Strategy To YieldBoost GVA From 0.9% To 12.7% Using Options
December 12, 2016 at 11:50 AM EST
Shareholders of Granite Construction Inc. (GVA) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the June 2017 covered call at the $65 strike and collect the premium based on the $3.60 bid, which annualizes to an additional 11.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.7% annualized rate in the scenario where the stock is not called away..