YieldBoost Comfort Systems USA From 1% To 9.9% Using Options
June 10, 2015 at 11:34 AM EDT
Shareholders of Comfort Systems USA, Inc. (FIX) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2016 covered call at the $25 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 8.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.9% annualized rate in the scenario where the stock is not called away..