YieldBoost SBUX To 6% Using Options
January 22, 2025 at 11:42 AM EST
Shareholders of Starbucks Corp. (SBUX) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the January 2027 covered call at the $130 strike and collect the premium based on the $6.85 bid, which annualizes to an additional 3.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away..