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September 01, 2020 1:29pm
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Strategy To YieldBoost ROK To 11.4% Using Options

Shareholders of Rockwell Automation, Inc. (ROK) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the August 2025 covered call at the $320 strike and collect the premium based on the $18.50 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.4% annualized rate in the scenario where the stock is not called away..
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