YieldBoost B To 33% Using Options
July 02, 2024 at 12:21 PM EDT
Shareholders of Barnes Group Inc. (B) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the August covered call at the $42.50 strike and collect the premium based on the $1.55 bid, which annualizes to an additional 31.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 33% annualized rate in the scenario where the stock is not called away..
