Strategy To YieldBoost ROK To 11.4% Using Options
December 17, 2024 at 11:34 AM EST
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..
