Strategy To YieldBoost Pier 1 Imports From 1.6% To 9.1% Using Options

Shareholders of Pier 1 Imports Inc. (PIR) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the December covered call at the $17 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 7.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.1% annualized rate in the scenario where the stock is not called away..