How To YieldBoost Xilinx To 16% Using Options
October 20, 2014 at 11:59 AM EDT
Shareholders of Xilinx, Inc. (XLNX) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the March 2015 covered call at the $42 strike and collect the premium based on the $2.26 bid, which annualizes to an additional 13.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16% annualized rate in the scenario where the stock is not called away..