YieldBoost Tribune Publishing From 7.5% To 18.9% Using Options

Shareholders of Tribune Publishing Co (TPCO) looking to boost their income beyond the stock's 7.5% annualized dividend yield can sell the April 2020 covered call at the $15 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 11.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.9% annualized rate in the scenario where the stock is not called away. Any upside above $15 would be lost if the stock rises there and is called away, but TPCO shares would have to advance 12.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 15.8% return from this trading level, in addition to any dividends collected before the stock was called.