Strategy To YieldBoost Genuine Parts From 2.9% To 9.9% Using Options
August 13, 2024 at 11:54 AM EDT
Shareholders of Genuine Parts Co. (GPC) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the February 2025 covered call at the $150 strike and collect the premium based on the $5.00 bid, which annualizes to an additional 7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.9% annualized rate in the scenario where the stock is not called away..
