How To YieldBoost Insteel Industries From 0.4% To 137.8% Using Options
April 17, 2024 at 11:40 AM EDT
Shareholders of Insteel Industries, Inc. (IIIN) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the April covered call at the $37.50 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 137.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 137.8% annualized rate in the scenario where the stock is not called away..
