YieldBoost Sanderson Farms To 10.2% Using Options

Shareholders of Sanderson Farms, Inc. (SAFM) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the August covered call at the $80 strike and collect the premium based on the $3.00 bid, which annualizes to an additional 9.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away..