How To YieldBoost NI To 8.4% Using Options
September 20, 2017 at 13:57 PM EDT
Shareholders of NiSource Inc. (NI) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the January 2018 covered call at the $27 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 5.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.4% annualized rate in the scenario where the stock is not called away..