Strategy To YieldBoost Natural Health Trends Corp. From 3.1% To 22.8% Using Options
January 22, 2018 at 12:00 PM EST
Shareholders of Natural Health Trends Corp. (NHTC) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the July covered call at the $20 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 19.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22.8% annualized rate in the scenario where the stock is not called away..
