Strategy To YieldBoost Moody's Corp. To 17% Using Options

Shareholders of Moody's Corp. (MCO) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the May covered call at the $90 strike and collect the premium based on the $4.45 bid, which annualizes to an additional 15.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17% annualized rate in the scenario where the stock is not called away..