Strategy To YieldBoost UHS To 14.2% Using Options

Shareholders of Universal Health Services, Inc. (UHS) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the October covered call at the $135 strike and collect the premium based on the $7.60 bid, which annualizes to an additional 13.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.2% annualized rate in the scenario where the stock is not called away..