Strategy To YieldBoost WWW To 28.7% Using Options
October 08, 2024 at 11:37 AM EDT
Shareholders of Wolverine World Wide, Inc. (WWW) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the March 2025 covered call at the $17.50 strike and collect the premium based on the $2.00 bid, which annualizes to an additional 26.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 28.7% annualized rate in the scenario where the stock is not called away..
