YieldBoost ASTE To 13.1% Using Options
October 28, 2021 at 11:51 AM EDT
Shareholders of Astec Industries, Inc. (ASTE) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the June 2022 covered call at the $55 strike and collect the premium based on the $4.10 bid, which annualizes to an additional 12.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.1% annualized rate in the scenario where the stock is not called away..
