How To YieldBoost Teradyne From 0.4% To 5.4% Using Options
May 15, 2024 at 11:31 AM EDT
Shareholders of Teradyne, Inc. (TER) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the January 2026 covered call at the $180 strike and collect the premium based on the $11.10 bid, which annualizes to an additional 5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.4% annualized rate in the scenario where the stock is not called away..
