How To YieldBoost Deluxe To 10.3% Using Options

Shareholders of Deluxe Corp. (DLX) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the October covered call at the $55 strike and collect the premium based on the $2.40 bid, which annualizes to an additional 8.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.3% annualized rate in the scenario where the stock is not called away..