YieldBoost Shoe Carnival From 1.3% To 9.3% Using Options
November 14, 2014 at 11:38 AM EST
Shareholders of Shoe Carnival, Inc. (SCVL) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the June 2015 covered call at the $20 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.3% annualized rate in the scenario where the stock is not called away..