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September 01, 2020 1:26pm
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YieldBoost Independent Bank Group From 4% To 20% Using Options

Shareholders of Independent Bank Group Inc. (IBTX) looking to boost their income beyond the stock's 4% annualized dividend yield can sell the May covered call at the $65 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 16% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20% annualized rate in the scenario where the stock is not called away..
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