YieldBoost Carpenter Technology Corp. To 22% Using Options
November 02, 2015 at 11:36 AM EST
Shareholders of Carpenter Technology Corp. (CRS) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the March 2016 covered call at the $35 strike and collect the premium based on the $2.55 bid, which annualizes to an additional 19.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22% annualized rate in the scenario where the stock is not called away..