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September 01, 2020 1:26pm
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YieldBoost Jack in the Box From 2.9% To 12.6% Using Options

Shareholders of Jack in the Box, Inc. (JACK) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the December covered call at the $70 strike and collect the premium based on the $4.10 bid, which annualizes to an additional 9.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.6% annualized rate in the scenario where the stock is not called away..
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