Strategy To YieldBoost ETH From 1.6% To 6.9% Using Options

Shareholders of Ethan Allen Interiors, Inc. (ETH) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the February 2015 covered call at the $30 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 5.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.9% annualized rate in the scenario where the stock is not called away..