How To YieldBoost LABL To 6.9% Using Options

Shareholders of Multi-Color Corp. (LABL) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the April 2015 covered call at the $55 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 6.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.9% annualized rate in the scenario where the stock is not called away..