How To YieldBoost MLM From 0.6% To 18% Using Options
September 18, 2024 at 11:39 AM EDT
Shareholders of Martin Marietta Materials, Inc. (MLM) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the December covered call at the $550 strike and collect the premium based on the $23.70 bid, which annualizes to an additional 17.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18% annualized rate in the scenario where the stock is not called away..