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September 01, 2020 1:37pm
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YieldBoost Total System Services From 0.5% To 9.6% Using Options

Shareholders of Total System Services, Inc. (TSS) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the November covered call at the $105 strike and collect the premium based on the $5.20 bid, which annualizes to an additional 9.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.6% annualized rate in the scenario where the stock is not called away..
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