YieldBoost Calavo Growers To 15.5% Using Options
November 19, 2024 at 11:50 AM EST
Shareholders of Calavo Growers, Inc. (CVGW) looking to boost their income beyond the stock's 3% annualized dividend yield can sell the July 2025 covered call at the $30 strike and collect the premium based on the $2.20 bid, which annualizes to an additional 12.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.5% annualized rate in the scenario where the stock is not called away..