YieldBoost CMTL From 4.3% To 12.1% Using Options

Shareholders of Comtech Telecommunications Corp. (CMTL) looking to boost their income beyond the stock's 4.3% annualized dividend yield can sell the October covered call at the $30 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 7.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.1% annualized rate in the scenario where the stock is not called away..