Shareholders of Arctic Cat Inc (ACAT) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the December covered call at the $40 strike and collect the premium based on the $1.15 bid, which annualizes to an additional 12.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.5% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stock rises there and is called away, but ACAT shares would have to climb 8.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 11.9% return from this trading level, in addition to any dividends collected before the stock was called.