How To YieldBoost Pier 1 Imports From 1.9% To 15.1% Using Options
February 17, 2015 at 11:36 AM EST
Shareholders of Pier 1 Imports Inc. (PIR) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the June covered call at the $14 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 13.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away..