How To YieldBoost DGX From 1.8% To 4.2% Using Options
August 21, 2018 at 11:48 AM EDT
Shareholders of Quest Diagnostics, Inc. (DGX) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the January 2020 covered call at the $125 strike and collect the premium based on the $3.80 bid, which annualizes to an additional 2.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.2% annualized rate in the scenario where the stock is not called away..
