YieldBoost SHYF at 10.6% using options

Sshareholders of Shyft Group Inc (Ticker: SHYF) looking to increase their income beyond the stock’s 0.3% annualized dividend yield may sell the March 2022 covered call at the $ 45 strike and collect the bonus based on the offer of $ 1.85, which cancels out at an additional $ 10.3. Rate of return in% of the current share price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% annualized rate in the scenario where the stock is not recalled . Any rise above $ 45 would be forfeited if the stock went up there and called, but SHYF shares would have to climb 20.1% from current levels for that to happen, which means in the scenario where the share is called, the shareholder earned a 25.1% return from that trading level, in addition to the dividends received before the share redemption.

In general, dividend amounts are not always predictable and tend to follow the ups and downs in each company’s profitability. In the case of Shyft Group Inc, examining the SHYF dividend history chart below can help determine whether the most recent dividend is likely to continue and whether it is reasonable to expect. an annualized dividend yield of 0.3%.

SHYF + Dividend + History + Graph

Below is a chart showing SHYF’s past twelve months trading history, with the strike price of $ 45 highlighted in red:

Loading + graph + - + 2021 + TickerTech.com

The chart above, and the historical volatility of the stock, can be a useful guide in combination with fundamental analysis to judge whether the sale of the March 2022 covered call option at the strike price of $ 45 offers a good reward for the risk of dropping the hike beyond $ 45. (Do most options expire worthless? This and six other common option myths debunked). We calculate the last twelve months volatility for Shyft Group Inc (taking into account the closing values ​​of the last 252 trading days as well as today’s price of $ 37.31) to be 42%. For other ideas for call option contracts with different expirations available, visit the SHYF Stock Options page of StockOptionsChannel.com.

As of mid-afternoon on Friday, the sales volume among S&P 500 components was 2.16 million contracts, with call volume of 3.63 million, for a put: call ratio of 0.59 so far for the day. Compared to the long-term median put: call ratio of 0.65, this represents a high call volume compared to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out what 15 buy and sell options traders are talking about today.

Best S&P 500 Yield Calls ”

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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