How To YieldBoost FMC To 15.2% Using Options
July 15, 2024 at 11:36 AM EDT
Shareholders of FMC Corp. (FMC) looking to boost their income beyond the stock's 4% annualized dividend yield can sell the June 2025 covered call at the $65 strike and collect the premium based on the $6.00 bid, which annualizes to an additional 11.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.2% annualized rate in the scenario where the stock is not called away..