YieldBoost Sinclair Broadcast Group To 13.4% Using Options
April 27, 2015 at 11:31 AM EDT
Shareholders of Sinclair Broadcast Group, Inc. (SBGI) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the December covered call at the $33 strike and collect the premium based on the $2.30 bid, which annualizes to an additional 11.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.4% annualized rate in the scenario where the stock is not called away..