YieldBoost Power Integrations From 1.2% To 11.5% Using Options
July 13, 2015 at 11:31 AM EDT
Shareholders of Power Integrations Inc. (POWI) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2016 covered call at the $45 strike and collect the premium based on the $2.15 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 11.5% annualized rate in the scenario where the stock is not called away..