YieldBoost Carpenter Technology Corp. From 1.4% To 15.2% Using Options
December 11, 2017 at 11:37 AM EST
Shareholders of Carpenter Technology Corp. (CRS) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the March 2018 covered call at the $55 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 13.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.2% annualized rate in the scenario where the stock is not called away..