How To YieldBoost ADTN To 9.9% Using Options
October 02, 2018 at 11:52 AM EDT
Shareholders of Adtran, Inc. (ADTN) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the May 2019 covered call at the $20 strike and collect the premium based on the 85 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 9.9% annualized rate in the scenario where the stock is not called away..