How To YieldBoost HY To 12.3% Using Options

Shareholders of Hyster-Yale Materials Handling, Inc. (HY) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the December covered call at the $75 strike and collect the premium based on the $3.80 bid, which annualizes to an additional 10.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.3% annualized rate in the scenario where the stock is not called away..