How To YieldBoost AGL Resources To 5.5% Using Options
August 18, 2014 at 11:43 AM EDT
Shareholders of AGL Resources Inc. (GAS) looking to boost their income beyond the stock's 3.8% annualized dividend yield can sell the October covered call at the $55 strike and collect the premium based on the 15 cents bid, which annualizes to an additional 1.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.5% annualized rate in the scenario where the stock is not called away..