YieldBoost Pier 1 Imports To 21.6% Using Options
December 18, 2017 at 11:31 AM EST
Shareholders of Pier 1 Imports Inc. (PIR) looking to boost their income beyond the stock's 6.7% annualized dividend yield can sell the June 2018 covered call at the $5 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 14.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 21.6% annualized rate in the scenario where the stock is not called away..