Strategy To YieldBoost GPI From 0.4% To 10% Using Options
February 03, 2025 at 11:43 AM EST
Shareholders of Group 1 Automotive, Inc. (GPI) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the July covered call at the $510 strike and collect the premium based on the $19.50 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away..
