How To YieldBoost AFOP To 17.7% Using Options
April 27, 2015 at 11:30 AM EDT
Shareholders of Alliance Fiber Optic Products Inc. (AFOP) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the October covered call at the $20 strike and collect the premium based on the $1.55 bid, which annualizes to an additional 16.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.7% annualized rate in the scenario where the stock is not called away..