How To YieldBoost Movado Group To 22.4% Using Options
December 03, 2024 at 11:37 AM EST
Shareholders of Movado Group, Inc. (MOV) looking to boost their income beyond the stock's 6.8% annualized dividend yield can sell the June 2025 covered call at the $22.50 strike and collect the premium based on the $1.75 bid, which annualizes to an additional 15.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22.4% annualized rate in the scenario where the stock is not called away..
