Strategy To YieldBoost HSII From 1.3% To 15.5% Using Options
October 15, 2021 at 11:44 AM EDT
Shareholders of Heidrick & Struggles International, Inc. (HSII) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2022 covered call at the $50 strike and collect the premium based on the $1.75 bid, which annualizes to an additional 14.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.5% annualized rate in the scenario where the stock is not called away..
