YieldBoost Terex To 11.6% Using Options
September 05, 2024 at 11:42 AM EDT
Shareholders of Terex Corp. (TEX) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the April 2025 covered call at the $60 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 10.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.6% annualized rate in the scenario where the stock is not called away..
