YieldBoost ITG To 11.5% Using Options
June 22, 2017 at 11:35 AM EDT
Shareholders of Investment Technology Group Inc. (ITG) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2018 covered call at the $22.50 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 10.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.5% annualized rate in the scenario where the stock is not called away..