Strategy To YieldBoost Deluxe From 2% To 14.4% Using Options

Shareholders of Deluxe Corp. (DLX) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the April 2015 covered call at the $60 strike and collect the premium based on the $2.95 bid, which annualizes to an additional 12.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.4% annualized rate in the scenario where the stock is not called away..