YieldBoost ClubCorp Holdings To 15.5% Using Options

Shareholders of ClubCorp Holdings Inc (MYCC) looking to boost their income beyond the stock's 4.3% annualized dividend yield can sell the March 2017 covered call at the $14 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 11.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.5% annualized rate in the scenario where the stock is not called away. Any upside above $14 would be lost if the stock rises there and is called away, but MYCC shares would have to advance 15.7% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 20.2% return from this trading level, in addition to any dividends collected before the stock was called.