YieldBoost ADM To 4.5% Using Options
June 23, 2016 at 11:55 AM EDT
Shareholders of Archer Daniels Midland Co. (ADM) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the January 2018 covered call at the $55 strike and collect the premium based on the $1.11 bid, which annualizes to an additional 1.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.5% annualized rate in the scenario where the stock is not called away..