YieldBoost Sturm, Ruger & Co. To 10.3% Using Options

Shareholders of Sturm, Ruger & Co., Inc. (RGR) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the October covered call at the $55 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 8.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.3% annualized rate in the scenario where the stock is not called away..