YieldBoost LUK To 14.3% Using Options

Shareholders of Leucadia National Corp. (LUK) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the March 2017 covered call at the $19 strike and collect the premium based on the $1.00 bid, which annualizes to an additional 13% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.3% annualized rate in the scenario where the stock is not called away..