Strategy To YieldBoost Oxford Industries From 1.4% To 12.4% Using Options

Shareholders of Oxford Industries, Inc. (OXM) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the January 2015 covered call at the $65 strike and collect the premium based on the $2.80 bid, which annualizes to an additional 11% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.4% annualized rate in the scenario where the stock is not called away..