Strategy To YieldBoost Sonic Automotive To 14.9% Using Options
July 14, 2016 at 11:41 AM EDT
Shareholders of Sonic Automotive, Inc. (SAH) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the November covered call at the $20 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 13.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.9% annualized rate in the scenario where the stock is not called away..