How To YieldBoost Aceto To 10.1% Using Options
July 23, 2014 at 12:50 PM EDT
Shareholders of Aceto Corp. (ACET) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the February 2015 covered call at the $20 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 8.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.1% annualized rate in the scenario where the stock is not called away..