YieldBoost ADTN To 18.9% Using Options
November 08, 2021 at 14:32 PM EST
Shareholders of Adtran, Inc. (ADTN) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the May 2022 covered call at the $22 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 17.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.9% annualized rate in the scenario where the stock is not called away..
