YieldBoost TSCO To 4.7% Using Options

Shareholders of Tractor Supply Co. (TSCO) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the January 2019 covered call at the $85 strike and collect the premium based on the $4.30 bid, which annualizes to an additional 3.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.7% annualized rate in the scenario where the stock is not called away..