Strategy To YieldBoost Moody's Corp. To 8.4% Using Options

Shareholders of Moody's Corp. (MCO) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the November covered call at the $105 strike and collect the premium based on the $3.20 bid, which annualizes to an additional 6.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.4% annualized rate in the scenario where the stock is not called away..