Strategy To YieldBoost FIX From 1.3% To 11.4%
July 10, 2013 at 11:29 AM EDT
Shareholders of Comfort Systems USA, Inc. (FIX) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the October covered call at the $17.50 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 10.2% 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.
