Strategy To YieldBoost Pier 1 Imports To 16.3% Using Options

Shareholders of Pier 1 Imports Inc. (PIR) looking to boost their income beyond the stock's 3.3% annualized dividend yield can sell the January 2018 covered call at the $10 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 12.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.3% annualized rate in the scenario where the stock is not called away..