How To YieldBoost SCVL From 1.5% To 20.1% Using Options
July 02, 2024 at 12:24 PM EDT
Shareholders of Shoe Carnival, Inc. (SCVL) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the September covered call at the $40 strike and collect the premium based on the $1.50 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 20.1% annualized rate in the scenario where the stock is not called away..
