Strategy To YieldBoost Rockwell Automation To 13.8% Using Options

Shareholders of Rockwell Automation, Inc. (ROK) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the April 2015 covered call at the $110 strike and collect the premium based on the $5.20 bid, which annualizes to an additional 11.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.8% annualized rate in the scenario where the stock is not called away..