YieldBoost LGF To 5.1% Using Options

Shareholders of Lions Gate Entertainment Corp. (LGF) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2017 covered call at the $40 strike and collect the premium based on the $2.55 bid, which annualizes to an additional 4.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.1% annualized rate in the scenario where the stock is not called away..