How To YieldBoost Comtech Telecommunications Corp. To 20.4% Using Options
December 09, 2021 at 12:41 PM EST
Shareholders of Comtech Telecommunications Corp. (CMTL) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the December covered call at the $30 strike and collect the premium based on the 10 cents bid, which annualizes to an additional 18.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.4% annualized rate in the scenario where the stock is not called away..