Strategy To YieldBoost Olympic Steel To 13.6% Using Options
September 24, 2024 at 11:33 AM EDT
Shareholders of Olympic Steel Inc. (ZEUS) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the January 2025 covered call at the $45 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 12.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.6% annualized rate in the scenario where the stock is not called away..