YieldBoost LGF From 1.8% To 21.6% Using Options

Shareholders of Lions Gate Entertainment Corp. (LGF) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the December covered call at the $21 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 19.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 21.6% annualized rate in the scenario where the stock is not called away..