YieldBoost VRTS From 1.1% To 13.4% Using Options
December 18, 2014 at 11:45 AM EST
Shareholders of Virtus Investment Partners Inc. (VRTS) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the July 2015 covered call at the $170 strike and collect the premium based on the $11.40 bid, which annualizes to an additional 12.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.4% annualized rate in the scenario where the stock is not called away..