How To YieldBoost Group 1 Automotive To 12.1% Using Options
July 10, 2024 at 12:44 PM EDT
Shareholders of Group 1 Automotive, Inc. (GPI) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the January 2025 covered call at the $310 strike and collect the premium based on the $16.90 bid, which annualizes to an additional 11.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.1% annualized rate in the scenario where the stock is not called away..
