How To YieldBoost Tredegar Corp. To 19.4% Using Options
December 12, 2017 at 11:34 AM EST
Shareholders of Tredegar Corp. (TG) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the March 2018 covered call at the $20 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 17.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.4% annualized rate in the scenario where the stock is not called away..