YieldBoost TTEC To 19.1% Using Options
July 23, 2024 at 11:34 AM EDT
Shareholders of TTEC Holdings Inc (TTEC) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2025 covered call at the $10 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 17.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.1% annualized rate in the scenario where the stock is not called away. Any upside above $10 would be lost if the stock rises there and is called away, but TTEC shares would have to climb 31.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 40.1% return from this trading level, in addition to any dividends collected before the stock was called.