Strategy To YieldBoost j2 Global From 0.5% To 10.6% Using Options
October 28, 2014 at 11:28 AM EDT
Shareholders of j2 Global, Inc. (JCOM) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the March 2015 covered call at the $55 strike and collect the premium based on the $2.05 bid, which annualizes to an additional 10.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% annualized rate in the scenario where the stock is not called away..