Strategy To YieldBoost Daktronics From 3% To 17.7% Using Options
March 10, 2017 at 11:40 AM EST
Shareholders of Daktronics Inc. (DAKT) looking to boost their income beyond the stock's 3% annualized dividend yield can sell the July covered call at the $10 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 14.7% 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..