YieldBoost Cash America International From 0.6% To 16.1% Using Options
November 25, 2015 at 11:34 AM EST
Shareholders of Cash America International, Inc. (CSH) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the March 2016 covered call at the $35 strike and collect the premium based on the $1.60 bid, which annualizes to an additional 15.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.1% annualized rate in the scenario where the stock is not called away..