How To YieldBoost SCHL To 9.5% Using Options
April 23, 2014 at 11:43 AM EDT
Shareholders of Scholastic Corp. (SCHL) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the December covered call at the $35 strike and collect the premium based on the $1.70 bid, which annualizes to an additional 7.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.5% annualized rate in the scenario where the stock is not called away..