Strategy To YieldBoost Activision Blizzard From 1% To 4.9% Using Options

Shareholders of Activision Blizzard, Inc. (ATVI) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2016 covered call at the $25 strike and collect the premium based on the $1.34 bid, which annualizes to an additional 3.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.9% annualized rate in the scenario where the stock is not called away..