YieldBoost BCC From 0.6% To 11.6% Using Options
November 20, 2024 at 11:34 AM EST
Shareholders of Boise Cascade Co. (BCC) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the July 2025 covered call at the $155 strike and collect the premium based on the $10.00 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 11.6% annualized rate in the scenario where the stock is not called away..
