Strategy To YieldBoost Hartford Financial Services Group From 2% To 4.4% Using Options
September 23, 2016 at 11:47 AM EDT
Shareholders of Hartford Financial Services Group Inc. (HIG) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the January 2018 covered call at the $50 strike and collect the premium based on the $1.36 bid, which annualizes to an additional 2.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.4% annualized rate in the scenario where the stock is not called away..