How To YieldBoost RPC To 12.1% Using Options
November 11, 2024 at 11:56 AM EST
Shareholders of RPC, Inc. (RES) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the June 2025 covered call at the $7.50 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 9.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.1% annualized rate in the scenario where the stock is not called away..