YieldBoost EVC To 27% Using Options
February 07, 2025 at 11:52 AM EST
Shareholders of Entravision Communications Corp. (EVC) looking to boost their income beyond the stock's 9.2% annualized dividend yield can sell the August covered call at the $2.50 strike and collect the premium based on the 20 cents bid, which annualizes to an additional 17.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 27% annualized rate in the scenario where the stock is not called away..
