YieldBoost SPG To 12.7% Using Options
June 13, 2024 at 11:36 AM EDT
Shareholders of Simon Property Group, Inc. (SPG) looking to boost their income beyond the stock's 5.3% annualized dividend yield can sell the June 2025 covered call at the $160 strike and collect the premium based on the $11.60 bid, which annualizes to an additional 7.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.7% annualized rate in the scenario where the stock is not called away..
