Strategy To YieldBoost WFM To 6.2% Using Options
April 06, 2015 at 11:36 AM EDT
Shareholders of Whole Foods Market, Inc. (WFM) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the November covered call at the $60 strike and collect the premium based on the $1.71 bid, which annualizes to an additional 5.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away..