YieldBoost SKYW To 11.2% Using Options
November 15, 2016 at 11:39 AM EST
Shareholders of SkyWest Inc. (SKYW) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the April 2017 covered call at the $40 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 10.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.2% annualized rate in the scenario where the stock is not called away..