YieldBoost SAH To 15.6% Using Options
October 03, 2024 at 13:38 PM EDT
Shareholders of Sonic Automotive, Inc. (SAH) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the May 2025 covered call at the $60 strike and collect the premium based on the $4.60 bid, which annualizes to an additional 13.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.6% annualized rate in the scenario where the stock is not called away..
