YieldBoost Phibro Animal Health Corp. To 17.1% Using Options
March 27, 2015 at 11:32 AM EDT
Shareholders of Phibro Animal Health Corp. (PAHC) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the September covered call at the $35 strike and collect the premium based on the $2.65 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 17.1% annualized rate in the scenario where the stock is not called away..