How To YieldBoost PKI From 0.5% To 5.4% Using Options
September 23, 2016 at 11:45 AM EDT
Shareholders of PerkinElmer, Inc. (PKI) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the March 2017 covered call at the $60 strike and collect the premium based on the $1.30 bid, which annualizes to an additional 4.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.4% annualized rate in the scenario where the stock is not called away..