How To YieldBoost Tredegar To 10.8%

Shareholders of Tredegar Corp. (NYSE: TG) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the December covered call at the $30 strike and collect the premium based on the $1.20 bid, which annualizes to an additional 9.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.8% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stoc...