Strategy To YieldBoost CECE From 1.9% To 13.9% Using Options
January 20, 2017 at 13:07 PM EST
Shareholders of CECO Environmental Corp. (CECE) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the August covered call at the $15 strike and collect the premium based on the 95 cents bid, which annualizes to an additional 12% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.9% annualized rate in the scenario where the stock is not called away..