YieldBoost AvalonBay Communities To 8% Using Options

Shareholders of AvalonBay Communities, Inc. (AVB) looking to boost their income beyond the stock's 3% annualized dividend yield can sell the October covered call at the $195 strike and collect the premium based on the $4.50 bid, which annualizes to an additional 4.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8% annualized rate in the scenario where the stock is not called away..