YieldBoost Curtiss-Wright To 6.5% Using Options
July 23, 2014 at 12:50 PM EDT
Shareholders of Curtiss-Wright Corp. (CW) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the March 2015 covered call at the $70 strike and collect the premium based on the $2.35 bid, which annualizes to an additional 5.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.5% annualized rate in the scenario where the stock is not called away..