YieldBoost Power Integrations From 0.9% To 17.5% Using Options

Shareholders of Power Integrations Inc. (POWI) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2015 covered call at the $55 strike and collect the premium based on the $2.35 bid, which annualizes to an additional 16.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.5% annualized rate in the scenario where the stock is not called away..