How To YieldBoost CSV From 0.6% To 11.2% Using Options
July 29, 2014 at 11:34 AM EDT
Shareholders of Carriage Services, Inc. (CSV) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the January 2015 covered call at the $17.50 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 10.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.2% annualized rate in the scenario where the stock is not called away..