How To YieldBoost Carbo Ceramics From 0.9% To 16.4% Using Options
March 28, 2014 at 11:39 AM EDT
Shareholders of Carbo Ceramics Inc. (CRR) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the September covered call at the $145 strike and collect the premium based on the $10.10 bid, which annualizes to an additional 15.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.4% annualized rate in the scenario where the stock is not called away..