YieldBoost Deere To 4.9% Using Options

Shareholders of Deere & Co. (DE) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the January 2016 covered call at the $100 strike and collect the premium based on the $2.81 bid, which annualizes to an additional 2.2% 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..