Strategy To YieldBoost CECO Environmental To 10.4% Using Options

Shareholders of CECO Environmental Corp. (CECE) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the February 2015 covered call at the $17.50 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 8.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.4% annualized rate in the scenario where the stock is not called away..