YieldBoost EMN To 6.5% Using Options
December 30, 2015 at 11:41 AM EST
Shareholders of Eastman Chemical Co. (EMN) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the January 2018 covered call at the $80 strike and collect the premium based on the $5.40 bid, which annualizes to an additional 3.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.5% annualized rate in the scenario where the stock is not called away..