YieldBoost West Pharmaceutical Services From 0.3% To 8.8% Using Options
September 18, 2024 at 11:39 AM EDT
Shareholders of West Pharmaceutical Services, Inc. (WST) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the September 2025 covered call at the $350 strike and collect the premium based on the $26.50 bid, which annualizes to an additional 8.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.8% annualized rate in the scenario where the stock is not called away..
