YieldBoost BCPC From 0.5% To 10% Using Options
April 20, 2015 at 11:33 AM EDT
Shareholders of Balchem Corp. (BCPC) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the November covered call at the $60 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 9.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away..