YieldBoost Steelcase To 17.7% Using Options
January 28, 2015 at 11:34 AM EST
Shareholders of Steelcase, Inc. (SCS) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the July covered call at the $17.50 strike and collect the premium based on the $1.20 bid, which annualizes to an additional 15.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.7% annualized rate in the scenario where the stock is not called away..