How To YieldBoost Pier 1 Imports From 1.9% To 7.6% Using Options

Shareholders of Pier 1 Imports Inc. (PIR) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the June 2015 covered call at the $15 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 5.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.6% annualized rate in the scenario where the stock is not called away..