How To YieldBoost Atlantic Tele-Network To 7.5% Using Options
June 04, 2014 at 11:49 AM EDT
Shareholders of Atlantic Tele-Network, Inc. (ATNI) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the December covered call at the $60 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 5.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.5% annualized rate in the scenario where the stock is not called away..
