YieldBoost ASTE From 1% To 19.7% Using Options
February 05, 2020 at 11:15 AM EST
Shareholders of Astec Industries, Inc. (ASTE) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the June covered call at the $45 strike and collect the premium based on the $3.00 bid, which annualizes to an additional 18.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.7% annualized rate in the scenario where the stock is not called away..