How To YieldBoost STT From 1.7% To 10.4% Using Options

Shareholders of State Street Corp. (STT) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the February 2016 covered call at the $80 strike and collect the premium based on the $4.55 bid, which annualizes to an additional 8.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.4% annualized rate in the scenario where the stock is not called away..