Strategy To YieldBoost CRS From 0.9% To 15.1% Using Options
April 29, 2024 at 11:34 AM EDT
Shareholders of Carpenter Technology Corp. (CRS) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the December covered call at the $95 strike and collect the premium based on the $7.60 bid, which annualizes to an additional 14.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away..