YieldBoost Apache From 1.7% To 6% Using Options
June 23, 2015 at 11:30 AM EDT
Shareholders of Apache Corp. (APA) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the January 2016 covered call at the $67.50 strike and collect the premium based on the $1.42 bid, which annualizes to an additional 4.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away..