Strategy To YieldBoost JJSF To 14.6% Using Options
May 03, 2024 at 11:30 AM EDT
Shareholders of J&J Snack Foods Corp. (JJSF) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the May covered call at the $220 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 12.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.6% annualized rate in the scenario where the stock is not called away..
