Strategy To YieldBoost McCormick To 8.8% Using Options
July 24, 2014 at 12:02 PM EDT
Shareholders of McCormick & Co., Inc. (MKC) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the December covered call at the $70 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 6.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.8% annualized rate in the scenario where the stock is not called away..