Strategy To YieldBoost Methode Electronics From 0.8% To 16.4% Using Options

Shareholders of Methode Electronics, Inc. (MEI) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the July covered call at the $50 strike and collect the premium based on the $2.20 bid, which annualizes to an additional 15.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.4% annualized rate in the scenario where the stock is not called away..