YieldBoost COG From 0.8% To 5.8% Using Options

Shareholders of Cabot Oil & Gas Corp. (COG) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2019 covered call at the $30 strike and collect the premium based on the $1.60 bid, which annualizes to an additional 5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away..