YieldBoost SCVL To 17.9% Using Options
April 17, 2017 at 11:36 AM EDT
Shareholders of Shoe Carnival, Inc. (SCVL) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the September covered call at the $25 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 16.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.9% annualized rate in the scenario where the stock is not called away..