YieldBoost BBSI From 1.6% To 12.6% Using Options
February 22, 2017 at 11:58 AM EST
Shareholders of Barrett Business Services, Inc. (BBSI) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the August covered call at the $70 strike and collect the premium based on the $3.40 bid, which annualizes to an additional 11.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.6% annualized rate in the scenario where the stock is not called away..