YieldBoost Flowserve From 1% To 8.4% Using Options
October 21, 2014 at 11:35 AM EDT
Shareholders of Flowserve Corp. (FLS) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the April 2015 covered call at the $70 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 7.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.4% annualized rate in the scenario where the stock is not called away..