How To YieldBoost Teradyne From 0.7% To 6.1% Using Options
April 29, 2019 at 11:48 AM EDT
Shareholders of Teradyne, Inc. (TER) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the January 2021 covered call at the $60 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 5.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.1% annualized rate in the scenario where the stock is not called away..
