YieldBoost CBT To 7.8% Using Options

Shareholders of Cabot Corp. (CBT) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the October covered call at the $65 strike and collect the premium based on the $2.10 bid, which annualizes to an additional 6.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.8% annualized rate in the scenario where the stock is not called away..