YieldBoost Supreme Industries From 0.8% To 25.2% Using Options
February 16, 2017 at 11:59 AM EST
Shareholders of Supreme Industries, Inc. (STS) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the June covered call at the $19.74 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 24.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 25.2% annualized rate in the scenario where the stock is not called away..