How To YieldBoost MCK From 0.6% To 11.2% Using Options

Shareholders of McKesson Corp. (MCK) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the February 2017 covered call at the $200 strike and collect the premium based on the $12.30 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 11.2% annualized rate in the scenario where the stock is not called away..