How To YieldBoost Cincinnati Financial Corp. To 7.1% Using Options

Shareholders of Cincinnati Financial Corp. (CINF) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the December covered call at the $75 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 4.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.1% annualized rate in the scenario where the stock is not called away..