YieldBoost HII To 11% Using Options
September 17, 2024 at 11:35 AM EDT
Shareholders of Huntington Ingalls Industries, Inc. (HII) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the March 2025 covered call at the $280 strike and collect the premium based on the $12.30 bid, which annualizes to an additional 9.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11% annualized rate in the scenario where the stock is not called away..