YieldBoost Sturm, Ruger & Co. From 3.1% To 10% Using Options

Shareholders of Sturm, Ruger & Co., Inc. (RGR) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the January 2015 covered call at the $70.50 strike and collect the premium based on the $2.80 bid, which annualizes to an additional 6.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away..