Strategy To YieldBoost FAST To 6.5% Using Options
May 06, 2024 at 11:34 AM EDT
Shareholders of Fastenal Co. (FAST) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the January 2026 covered call at the $79.62 strike and collect the premium based on the $4.80 bid, which annualizes to an additional 4.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.5% annualized rate in the scenario where the stock is not called away..