Strategy To YieldBoost Kaiser Aluminum Corp. To 11.6% Using Options
December 12, 2019 at 11:31 AM EST
Shareholders of Kaiser Aluminum Corp. (KALU) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the June 2020 covered call at the $120 strike and collect the premium based on the $5.70 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.6% annualized rate in the scenario where the stock is not called away..
