YieldBoost ABM To 50.6% Using Options
December 14, 2017 at 11:39 AM EST
Shareholders of ABM Industries, Inc. (ABM) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the December covered call at the $40 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 48.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 50.6% annualized rate in the scenario where the stock is not called away..
