Strategy To YieldBoost Winnebago Industries To 9.8% Using Options
March 27, 2024 at 11:36 AM EDT
Shareholders of Winnebago Industries, Inc. (WGO) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the January 2025 covered call at the $85 strike and collect the premium based on the $4.70 bid, which annualizes to an additional 8.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.8% annualized rate in the scenario where the stock is not called away..
