YieldBoost EMN From 2.7% To 16.5% Using Options
June 29, 2016 at 11:38 AM EDT
Shareholders of Eastman Chemical Co. (EMN) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the December covered call at the $67.50 strike and collect the premium based on the $4.30 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 16.5% annualized rate in the scenario where the stock is not called away..