YieldBoost ROL To 15.9% Using Options
July 17, 2024 at 12:16 PM EDT
Shareholders of Rollins, Inc. (ROL) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the November covered call at the $50 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 14.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.9% annualized rate in the scenario where the stock is not called away..