Strategy To YieldBoost SAH To 10.2% Using Options
April 28, 2017 at 11:33 AM EDT
Shareholders of Sonic Automotive, Inc. (SAH) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the November covered call at the $22.50 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 9.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away..