How To YieldBoost Deluxe Corp. To 13.4% Using Options
August 22, 2014 at 11:43 AM EDT
Shareholders of Deluxe Corp. (DLX) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the January 2015 covered call at the $60 strike and collect the premium based on the $2.70 bid, which annualizes to an additional 11.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.4% annualized rate in the scenario where the stock is not called away..