How To YieldBoost KFRC To 9.6% Using Options
December 17, 2019 at 11:50 AM EST
Shareholders of Kforce Inc. (KFRC) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the April 2020 covered call at the $45 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 7.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.6% annualized rate in the scenario where the stock is not called away..