How To YieldBoost Columbus McKinnon Corp. To 15.5% Using Options
December 12, 2018 at 12:51 PM EST
Shareholders of Columbus McKinnon Corp. (CMCO) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the March 2019 covered call at the $35 strike and collect the premium based on the $1.20 bid, which annualizes to an additional 14.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.5% annualized rate in the scenario where the stock is not called away..
