YieldBoost Airgas To 1.7% Using Options
April 27, 2016 at 11:42 AM EDT
Shareholders of Airgas Inc. (ARG) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the January 2018 covered call at the $145 strike and collect the premium based on the 10 cents bid, which annualizes to an additional 0% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 1.7% annualized rate in the scenario where the stock is not called away..
