Strategy To YieldBoost James River Group Holdings From 2.4% To 20.2% Using Options
July 16, 2024 at 11:35 AM EDT
Shareholders of James River Group Holdings Ltd. (JRVR) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the February 2025 covered call at the $10 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 17.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.2% annualized rate in the scenario where the stock is not called away..