Strategy To YieldBoost Carpenter Technology Corp. From 2.1% To 10.6% Using Options

Shareholders of Carpenter Technology Corp. (CRS) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the December covered call at the $40 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% annualized rate in the scenario where the stock is not called away..