How To YieldBoost Group 1 Automotive To 16.2% Using Options

Shareholders of Group 1 Automotive, Inc. (GPI) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the April 2018 covered call at the $85 strike and collect the premium based on the $4.30 bid, which annualizes to an additional 15% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.2% annualized rate in the scenario where the stock is not called away..