How To YieldBoost PCAR From 1.4% To 8.2% Using Options

Shareholders of PACCAR Inc. (PCAR) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the December covered call at the $110 strike and collect the premium based on the $5.80 bid, which annualizes to an additional 6.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.2% annualized rate in the scenario where the stock is not called away..