How To YieldBoost TRN From 1.6% To 6.3% Using Options

Shareholders of Trinity Industries, Inc. (TRN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2019 covered call at the $35 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 4.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.3% annualized rate in the scenario where the stock is not called away..