How To YieldBoost Ingles Markets To 9.1% Using Options
May 01, 2014 at 11:45 AM EDT
Shareholders of Ingles Markets, Inc. (IMKTA) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the November covered call at the $25 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 6.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.1% annualized rate in the scenario where the stock is not called away..