How To YieldBoost CGNX From 0.6% To 10.2% Using Options

Shareholders of Cognex Corp. (CGNX) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the February 2017 covered call at the $55 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 9.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away..