YieldBoost Graham Corp. From 1.8% To 9.5% Using Options
December 12, 2017 at 11:33 AM EST
Shareholders of Graham Corp. (GHM) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the June 2018 covered call at the $22.50 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 7.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.5% annualized rate in the scenario where the stock is not called away..
