Strategy To YieldBoost JBL From 1.5% To 4.3% Using Options

Shareholders of Jabil Circuit, Inc. (JBL) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the January 2016 covered call at the $27 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 2.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.3% annualized rate in the scenario where the stock is not called away..