YieldBoost CECO Environmental Corp. From 5% To 11.6% Using Options
November 10, 2017 at 11:41 AM EST
Shareholders of CECO Environmental Corp. (CECE) looking to boost their income beyond the stock's 5% annualized dividend yield can sell the May 2018 covered call at the $7.50 strike and collect the premium based on the 20 cents bid, which annualizes to an additional 6.5% 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..
