Strategy To YieldBoost Boise Cascade Co. To 17.7% Using Options
September 07, 2021 at 11:36 AM EDT
Shareholders of Boise Cascade Co. (BCC) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the April 2022 covered call at the $60 strike and collect the premium based on the $6.00 bid, which annualizes to an additional 17% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.7% annualized rate in the scenario where the stock is not called away..
