How To YieldBoost Apartment Investment & Management From 2.9% To 8% Using Options

Shareholders of Apartment Investment & Management Co. (AIV) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the September covered call at the $40 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8% annualized rate in the scenario where the stock is not called away..