YieldBoost TESO To 11.6% Using Options

Shareholders of Tesco Corp. (TESO) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the March 2015 covered call at the $20 strike and collect the premium based on the 75 cents bid, which annualizes to an additional 10.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.6% annualized rate in the scenario where the stock is not called away..