YieldBoost CECO Environmental Corp. To 17.5% Using Options
April 15, 2014 at 11:43 AM EDT
Shareholders of CECO Environmental Corp. (CECE) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the August covered call at the $17.50 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 16.2% 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..