YieldBoost CMCO To 15.7% Using Options
May 21, 2018 at 11:48 AM EDT
Shareholders of Columbus McKinnon Corp. (CMCO) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the September covered call at the $40 strike and collect the premium based on the $1.95 bid, which annualizes to an additional 15.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.7% annualized rate in the scenario where the stock is not called away..
