YieldBoost RES From 2.4% To 14.2% Using Options
May 02, 2024 at 11:31 AM EDT
Shareholders of RPC, Inc. (RES) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the December covered call at the $7.50 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 11.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.2% annualized rate in the scenario where the stock is not called away..