Strategy To YieldBoost MLHR To 17.5% Using Options
April 15, 2014 at 11:43 AM EDT
Shareholders of Herman Miller Inc. (MLHR) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the August covered call at the $30 strike and collect the premium based on the $1.55 bid, which annualizes to an additional 15.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.5% annualized rate in the scenario where the stock is not called away..