Strategy To YieldBoost CERN To 10.1% Using Options

Shareholders of Cerner Corp. (CERN) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2022 covered call at the $82.50 strike and collect the premium based on the $7.10 bid, which annualizes to an additional 9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.1% annualized rate in the scenario where the stock is not called away..