YieldBoost Scholastic Corp. From 1.6% To 8.6% Using Options
November 07, 2017 at 11:36 AM EST
Shareholders of Scholastic Corp. (SCHL) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the June 2018 covered call at the $40 strike and collect the premium based on the $1.55 bid, which annualizes to an additional 7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.6% annualized rate in the scenario where the stock is not called away..