Strategy To YieldBoost Leucadia National Corp. From 1.4% To 16.3% Using Options

Shareholders of Leucadia National Corp. (LUK) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the December covered call at the $18 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 14.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.3% annualized rate in the scenario where the stock is not called away..