YieldBoost OMG To 7.5% Using Options
February 28, 2014 at 11:58 AM EST
Shareholders of OM Group, Inc. (OMG) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the September covered call at the $35 strike and collect the premium based on the $1.15 bid, which annualizes to an additional 6.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.5% annualized rate in the scenario where the stock is not called away..