YieldBoost Valero Energy Corp. From 3.8% To 8% Using Options

Shareholders of Valero Energy Corp. (VLO) looking to boost their income beyond the stock's 3.8% annualized dividend yield can sell the January 2018 covered call at the $75 strike and collect the premium based on the $2.99 bid, which annualizes to an additional 4.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8% annualized rate in the scenario where the stock is not called away..