How To YieldBoost F From 5% To 8.1% Using Options
June 06, 2024 at 11:33 AM EDT
Shareholders of Ford Motor Co. (F) looking to boost their income beyond the stock's 5% annualized dividend yield can sell the December 2026 covered call at the $16.82 strike and collect the premium based on the 95 cents bid, which annualizes to an additional 3.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.1% annualized rate in the scenario where the stock is not called away..