How To YieldBoost Pozen To 37.5% Using Options
December 08, 2014 at 11:32 AM EST
Shareholders of Pozen Inc. (POZN) looking to boost their income beyond the stock's 19.1% annualized dividend yield can sell the June 2015 covered call at the $12 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 18.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 37.5% annualized rate in the scenario where the stock is not called away..