Sign In  |  Register  |  About Daly City  |  Contact Us

Daly City, CA
September 01, 2020 1:20pm
7-Day Forecast | Traffic
  • Search Hotels in Daly City

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

How To YieldBoost CHCT From 10% To 29.6% Using Options

Shareholders of Community Healthcare Trust Inc (CHCT) looking to boost their income beyond the stock's 10% annualized dividend yield can sell the January 2025 covered call at the $20 strike and collect the premium based on the 60 cents bid, which annualizes to an additional 19.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 29.6% annualized rate in the scenario where the stock is not called away. Any upside above $20 would be lost if the stock rises there and is called away, but CHCT shares would have to advance 7.6% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 10.8% return from this trading level, in addition to any dividends collected before the stock was called.
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 DalyCity.com & California Media Partners, LLC. All rights reserved.