How To YieldBoost MLM To 6.9% Using Options
March 18, 2024 at 11:44 AM EDT
Shareholders of Martin Marietta Materials, Inc. (MLM) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the December covered call at the $680 strike and collect the premium based on the $29.10 bid, which annualizes to an additional 6.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.9% annualized rate in the scenario where the stock is not called away..
