YieldBoost Quality Systems From 4.4% To 11.7% Using Options
March 30, 2015 at 11:31 AM EDT
Shareholders of Quality Systems, Inc. (QSII) looking to boost their income beyond the stock's 4.4% annualized dividend yield can sell the September covered call at the $17.50 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 7.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.7% annualized rate in the scenario where the stock is not called away..