Strategy To YieldBoost Carriage Services To 9% Using Options
December 12, 2019 at 11:31 AM EST
Shareholders of Carriage Services, Inc. (CSV) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the July 2020 covered call at the $30 strike and collect the premium based on the $1.30 bid, which annualizes to an additional 7.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9% annualized rate in the scenario where the stock is not called away..