Strategy To YieldBoost Power Integrations From 1.2% To 8.3% Using Options
August 26, 2024 at 11:36 AM EDT
Shareholders of Power Integrations Inc. (POWI) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the April 2025 covered call at the $85 strike and collect the premium based on the $3.10 bid, which annualizes to an additional 7.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.3% annualized rate in the scenario where the stock is not called away..
