YieldBoost American Vanguard Corp. To 20.9% Using Options
June 22, 2017 at 11:35 AM EDT
Shareholders of American Vanguard Corp. (AVD) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the November covered call at the $17.50 strike and collect the premium based on the $1.45 bid, which annualizes to an additional 20.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.9% annualized rate in the scenario where the stock is not called away..