Strategy To YieldBoost Universal Forest Products From 0.9% To 8.6% Using Options

Shareholders of Universal Forest Products Inc. (UFPI) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the April 2015 covered call at the $50 strike and collect the premium based on the $2.35 bid, which annualizes to an additional 7.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.6% annualized rate in the scenario where the stock is not called away..