Strategy To YieldBoost Comtech Telecommunications Corp. To 25.1% Using Options
December 13, 2017 at 11:35 AM EST
Shareholders of Comtech Telecommunications Corp. (CMTL) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the April 2018 covered call at the $22.50 strike and collect the premium based on the $1.80 bid, which annualizes to an additional 23.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 25.1% annualized rate in the scenario where the stock is not called away..