How To YieldBoost Sonic Automotive To 11.4% Using Options

Shareholders of Sonic Automotive, Inc. (SAH) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the November covered call at the $65 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 9.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.4% annualized rate in the scenario where the stock is not called away..
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