How To YieldBoost Comtech Telecommunications Corp. From 1.6% To 18.4% Using Options
September 07, 2021 at 11:36 AM EDT
Shareholders of Comtech Telecommunications Corp. (CMTL) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2022 covered call at the $30 strike and collect the premium based on the $1.60 bid, which annualizes to an additional 16.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.4% annualized rate in the scenario where the stock is not called away..