How To YieldBoost Humana To 3.7% Using Options
July 03, 2024 at 12:08 PM EDT
Shareholders of Humana Inc. (HUM) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2026 covered call at the $500 strike and collect the premium based on the $15.60 bid, which annualizes to an additional 2.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.7% annualized rate in the scenario where the stock is not called away..