YieldBoost BMY From 2.8% To 6% Using Options

Shareholders of Bristol-Myers Squibb Co. (BMY) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the January 2016 covered call at the $57.50 strike and collect the premium based on the $2.17 bid, which annualizes to an additional 3.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6% annualized rate in the scenario where the stock is not called away..