How To YieldBoost AVY To 10% Using Options

Shareholders of Avery Dennison Corp. (AVY) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the April 2017 covered call at the $75 strike and collect the premium based on the $2.10 bid, which annualizes to an additional 7.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away..