How To YieldBoost NMRK From 0.8% To 20.9% Using Options

Shareholders of Newmark Group Inc (NMRK) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the June covered call at the $15 strike and collect the premium based on the 95 cents bid, which annualizes to an additional 20% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.9% annualized rate in the scenario where the stock is not called away. Any upside above $15 would be lost if the stock rises there and is called away, but NMRK shares would have to advance 4.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 11.5% return from this trading level, in addition to any dividends collected before the stock was called.