YieldBoost GNE From 4.5% To 12.5% Using Options
September 28, 2017 at 11:36 AM EDT
Shareholders of Genie Energy Ltd. (GNE) looking to boost their income beyond the stock's 4.5% annualized dividend yield can sell the March 2018 covered call at the $10 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.5% annualized rate in the scenario where the stock is not called away..