How To YieldBoost COH To 15% Using Options

Shareholders of Coach, Inc. (COH) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the November covered call at the $46 strike and collect the premium based on the $1.75 bid, which annualizes to an additional 11.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15% annualized rate in the scenario where the stock is not called away..