YieldBoost Rent-A-Center To 15.1% Using Options

Shareholders of Rent-A-Center Inc. (RCII) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the March 2015 covered call at the $35 strike and collect the premium based on the $1.20 bid, which annualizes to an additional 12.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away..