YieldBoost Snap-On To 10.1% Using Options
September 23, 2016 at 11:45 AM EDT
Shareholders of Snap-On, Inc. (SNA) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2017 covered call at the $155 strike and collect the premium based on the $6.20 bid, which annualizes to an additional 8.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.1% annualized rate in the scenario where the stock is not called away..