YieldBoost RPC From 1.4% To 8.3% Using Options
May 27, 2015 at 11:35 AM EDT
Shareholders of RPC, Inc. (RES) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the December covered call at the $17.50 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 6.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.3% annualized rate in the scenario where the stock is not called away..