Strategy To YieldBoost GATX Corp. To 13.4% Using Options

Shareholders of GATX Corp. (GMT) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the March 2015 covered call at the $60 strike and collect the premium based on the $1.55 bid, which annualizes to an additional 11.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.4% annualized rate in the scenario where the stock is not called away..