YieldBoost HUM To 8.3% Using Options

Shareholders of Humana Inc. (HUM) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the January 2017 covered call at the $195 strike and collect the premium based on the $14.40 bid, which annualizes to an additional 7.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.3% annualized rate in the scenario where the stock is not called away..