How To YieldBoost RGR From 1.4% To 11.9% Using Options
July 16, 2024 at 11:38 AM EDT
Shareholders of Sturm, Ruger & Co., Inc. (RGR) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the November covered call at the $50 strike and collect the premium based on the $1.55 bid, which annualizes to an additional 10.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.9% annualized rate in the scenario where the stock is not called away..