How To YieldBoost Wolverine World Wide To 12.9% Using Options
July 09, 2024 at 11:41 AM EDT
Shareholders of Wolverine World Wide, Inc. (WWW) looking to boost their income beyond the stock's 3.2% annualized dividend yield can sell the December covered call at the $17.50 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 9.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.9% annualized rate in the scenario where the stock is not called away..