Strategy To YieldBoost BBOX To 15.8% Using Options
October 30, 2014 at 11:27 AM EDT
Shareholders of Black Box Corp. (BBOX) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the March 2015 covered call at the $22.50 strike and collect the premium based on the $1.15 bid, which annualizes to an additional 13.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.8% annualized rate in the scenario where the stock is not called away..