How To YieldBoost Omnicom Group To 13% Using Options
September 23, 2016 at 11:46 AM EDT
Shareholders of Omnicom Group, Inc. (OMC) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the January 2017 covered call at the $85 strike and collect the premium based on the $2.85 bid, which annualizes to an additional 10.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13% annualized rate in the scenario where the stock is not called away..