How To YieldBoost Terex From 1.2% To 9.9% Using Options
December 04, 2024 at 11:43 AM EST
Shareholders of Terex Corp. (TEX) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the July 2025 covered call at the $65 strike and collect the premium based on the $2.95 bid, which annualizes to an additional 8.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.9% annualized rate in the scenario where the stock is not called away..
