YieldBoost SXI To 6.8% Using Options
April 01, 2014 at 11:43 AM EDT
Shareholders of Standex International Corp. (SXI) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the November covered call at the $60 strike and collect the premium based on the $2.10 bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.8% annualized rate in the scenario where the stock is not called away..