YieldBoost ADP From 2.2% To 8.8% Using Options

Shareholders of Automatic Data Processing Inc. (ADP) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the January 2018 covered call at the $105 strike and collect the premium based on the $5.10 bid, which annualizes to an additional 6.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.8% annualized rate in the scenario where the stock is not called away..