YieldBoost Estee Lauder Cos. To 10.5% Using Options

Shareholders of Estee Lauder Cos., Inc. (EL) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2017 covered call at the $95 strike and collect the premium based on the $4.30 bid, which annualizes to an additional 9.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.5% annualized rate in the scenario where the stock is not called away..
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