YieldBoost CVGW From 1.4% To 10.9% Using Options
October 18, 2017 at 11:35 AM EDT
Shareholders of Calavo Growers, Inc. (CVGW) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the April 2018 covered call at the $75 strike and collect the premium based on the $3.40 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.9% annualized rate in the scenario where the stock is not called away..