How To YieldBoost Sonic Automotive To 6.7% Using Options

Shareholders of Sonic Automotive, Inc. (SAH) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the May 2018 covered call at the $25 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 5.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.7% annualized rate in the scenario where the stock is not called away..