YieldBoost FSS From 0.9% To 11.2% Using Options

Shareholders of Federal Signal Corp. (FSS) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the February 2015 covered call at the $15 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 10.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.2% annualized rate in the scenario where the stock is not called away..