YieldBoost HL To 8.2% Using Options
December 29, 2015 at 11:37 AM EST
Shareholders of Hecla Mining Co. (HL) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the January 2018 covered call at the $4 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 7.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.2% annualized rate in the scenario where the stock is not called away..