How To YieldBoost Parker Hannifin Corp. To 13.4% Using Options
September 23, 2016 at 11:46 AM EDT
Shareholders of Parker Hannifin Corp. (PH) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the February 2017 covered call at the $125 strike and collect the premium based on the $5.60 bid, which annualizes to an additional 11.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.4% annualized rate in the scenario where the stock is not called away..