How To YieldBoost NSSC From 1.2% To 16.8% Using Options
November 25, 2024 at 11:36 AM EST
Shareholders of NAPCO Security Technologies, Inc. (NSSC) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the March 2025 covered call at the $45 strike and collect the premium based on the $2.00 bid, which annualizes to an additional 15.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.8% annualized rate in the scenario where the stock is not called away..
