YieldBoost Ingles Markets To 22.8% Using Options

Shareholders of Ingles Markets, Inc. (IMKTA) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the May covered call at the $40 strike and collect the premium based on the $2.00 bid, which annualizes to an additional 20.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22.8% annualized rate in the scenario where the stock is not called away..