How To YieldBoost ARTNA To 12.9% Using Options
December 11, 2017 at 11:38 AM EST
Shareholders of Artesian Resources Corp. (ARTNA) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the June 2018 covered call at the $40 strike and collect the premium based on the $2.00 bid, which annualizes to an additional 10.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.9% annualized rate in the scenario where the stock is not called away..
