YieldBoost Courier From 5.3% To 12.4% Using Options
March 18, 2014 at 11:41 AM EDT
Shareholders of Courier Corp. (CRRC) looking to boost their income beyond the stock's 5.3% annualized dividend yield can sell the October covered call at the $17.50 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.4% annualized rate in the scenario where the stock is not called away..