How To YieldBoost Steelcase From 3.1% To 13.8% Using Options
March 20, 2024 at 12:02 PM EDT
Shareholders of Steelcase, Inc. (SCS) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the October covered call at the $15 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 10.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.8% annualized rate in the scenario where the stock is not called away..