How To YieldBoost KLIC To 14.7% Using Options
October 03, 2024 at 13:37 PM EDT
Shareholders of Kulicke & Soffa Industries, Inc. (KLIC) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the May 2025 covered call at the $50 strike and collect the premium based on the $3.60 bid, which annualizes to an additional 12.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.7% annualized rate in the scenario where the stock is not called away..