Strategy To YieldBoost Hanmi Financial Corp. To 7.9% Using Options

Shareholders of Hanmi Financial Corp. (HAFC) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the April 2015 covered call at the $22.50 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 6.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.9% annualized rate in the scenario where the stock is not called away..