How To YieldBoost Xcel Energy From 3.8% To 7.7% Using Options

Shareholders of Xcel Energy, Inc. (XEL) looking to boost their income beyond the stock's 3.8% annualized dividend yield can sell the December covered call at the $35 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 3.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.7% annualized rate in the scenario where the stock is not called away..