How To YieldBoost ATML To 13% Using Options
November 25, 2015 at 11:34 AM EST
Shareholders of Atmel Corp. (ATML) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the May 2016 covered call at the $9 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 11.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13% annualized rate in the scenario where the stock is not called away..