YieldBoost Olin From 1.9% To 14.4% Using Options
November 21, 2024 at 11:35 AM EST
Shareholders of Olin Corp. (OLN) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the May 2025 covered call at the $45 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 12.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.4% annualized rate in the scenario where the stock is not called away..
