Strategy To YieldBoost SPAR From 2% To 21.6% Using Options

Shareholders of Spartan Motors, Inc. (SPAR) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the June covered call at the $5 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 19.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 21.6% annualized rate in the scenario where the stock is not called away..