How To YieldBoost Macatawa Bank Corp. From 2% To 20.8% Using Options
September 13, 2018 at 11:56 AM EDT
Shareholders of Macatawa Bank Corp. (MCBC) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the September covered call at the $12.50 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 18.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.8% annualized rate in the scenario where the stock is not called away..