Strategy To YieldBoost HII From 2.1% To 7.2% Using Options
June 18, 2024 at 12:45 PM EDT
Shareholders of Huntington Ingalls Industries, Inc. (HII) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the September covered call at the $270 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.2% annualized rate in the scenario where the stock is not called away..