How To YieldBoost BF.B To 17% Using Options
December 16, 2024 at 11:38 AM EST
Shareholders of Brown-Forman Corp (BF. ) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the March 2025 covered call at the $45 strike and collect the premium based on the $1.75 bid, which annualizes to an additional 15% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17% annualized rate in the scenario where the stock is not called away.