YieldBoost WOR To 11% Using Options
December 05, 2016 at 11:40 AM EST
Shareholders of Worthington Industries, Inc. (WOR) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the June 2017 covered call at the $65 strike and collect the premium based on the $2.90 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11% annualized rate in the scenario where the stock is not called away..