How To YieldBoost Green Plains From 1.9% To 17.7% Using Options
September 23, 2016 at 11:47 AM EDT
Shareholders of Green Plains Inc. (GPRE) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the March 2017 covered call at the $28 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 15.8% 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..