Strategy To YieldBoost NAPCO Security Technologies From 0.9% To 29.6% Using Options
August 26, 2024 at 11:47 AM EDT
Shareholders of NAPCO Security Technologies, Inc. (NSSC) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the December covered call at the $50 strike and collect the premium based on the $4.30 bid, which annualizes to an additional 28.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 29.6% annualized rate in the scenario where the stock is not called away..