How To YieldBoost CAH To 6.3% Using Options
June 21, 2017 at 11:33 AM EDT
Shareholders of Cardinal Health, Inc. (CAH) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the December covered call at the $82.50 strike and collect the premium based on the $1.45 bid, which annualizes to an additional 3.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.3% annualized rate in the scenario where the stock is not called away..