Strategy To YieldBoost TGI From 0.4% To 22.3% Using Options
July 21, 2016 at 12:07 PM EDT
Shareholders of Triumph Group Inc. (TGI) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the December covered call at the $40 strike and collect the premium based on the $3.50 bid, which annualizes to an additional 21.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22.3% annualized rate in the scenario where the stock is not called away..