YieldBoost Shore Bancshares To 24.2% Using Options
March 07, 2024 at 11:48 AM EST
Shareholders of Shore Bancshares Inc. (SHBI) looking to boost their income beyond the stock's 4.2% annualized dividend yield can sell the March covered call at the $17.50 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 20.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 24.2% annualized rate in the scenario where the stock is not called away..