Strategy To YieldBoost Bristol-Myers Squibb Co. To 6.2% Using Options

Shareholders of Bristol-Myers Squibb Co. (BMY) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the January 2018 covered call at the $70 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 3.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away..