YieldBoost AFOP To 11.5% Using Options

Shareholders of Alliance Fiber Optic Products Inc. (AFOP) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2015 covered call at the $17.50 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 10.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.5% annualized rate in the scenario where the stock is not called away..