YieldBoost AVD From 1.6% To 7.8% Using Options

Shareholders of American Vanguard Corp. (AVD) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the May 2015 covered call at the $15 strike and collect the premium based on the 40 cents bid, which annualizes to an additional 6.2% 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..