YieldBoost AVD To 30.8% Using Options

Shareholders of American Vanguard Corp. (AVD) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the March covered call at the $12.50 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 30.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 30.8% annualized rate in the scenario where the stock is not called away..