YieldBoost Balchem Corp. To 11.5% Using Options
December 12, 2019 at 11:29 AM EST
Shareholders of Balchem Corp. (BCPC) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the May 2020 covered call at the $110 strike and collect the premium based on the $4.90 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.5% annualized rate in the scenario where the stock is not called away..