Skip to main content

YieldBoost TTEK To 101.6% Using Options

Shareholders of Tetra Tech Inc (TTEK) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the November covered call at the $190 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 101.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 101.6% annualized rate in the scenario where the stock is not called away. Any upside above $190 would be lost if the stock rises there and is called away, but TTEK shares would have to advance 5.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 5.8% return from this trading level, in addition to any dividends collected before the stock was called.
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.