YieldBoost Sealed Air Corp. From 1.6% To 12.8% Using Options
October 20, 2014 at 11:58 AM EDT
Shareholders of Sealed Air Corp. (SEE) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the April 2015 covered call at the $34 strike and collect the premium based on the $1.80 bid, which annualizes to an additional 11.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.8% annualized rate in the scenario where the stock is not called away..