YieldBoost Dawson Geophysical From 1.5% To 16.2% Using Options
September 16, 2014 at 11:54 AM EDT
Shareholders of Dawson Geophysical Co. (DWSN) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the March 2015 covered call at the $22.50 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.2% annualized rate in the scenario where the stock is not called away..