How To YieldBoost Schwab Charles Corp. From 0.7% To 11.9% Using Options
July 21, 2015 at 11:38 AM EDT
Shareholders of Schwab Charles Corp. (SCHW) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the March 2016 covered call at the $35 strike and collect the premium based on the $2.60 bid, which annualizes to an additional 11.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.9% annualized rate in the scenario where the stock is not called away..