YieldBoost Snap-On To 7.2% Using Options
March 21, 2017 at 11:55 AM EDT
Shareholders of Snap-On, Inc. (SNA) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the September covered call at the $180 strike and collect the premium based on the $4.60 bid, which annualizes to an additional 5.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.2% annualized rate in the scenario where the stock is not called away..