YieldBoost MTW To 17.6% Using Options
July 21, 2015 at 11:38 AM EDT
Shareholders of Manitowoc Co., Inc. (MTW) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the December covered call at the $19 strike and collect the premium based on the $1.30 bid, which annualizes to an additional 17.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.6% annualized rate in the scenario where the stock is not called away..