Strategy To YieldBoost Stein Mart To 11.3% Using Options

Shareholders of Stein Mart, Inc. (SMRT) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the November covered call at the $15 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 9.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.3% annualized rate in the scenario where the stock is not called away..