How To YieldBoost Stage Stores From 8.4% To 39.3% Using Options

Shareholders of Stage Stores Inc. (SSI) looking to boost their income beyond the stock's 8.4% annualized dividend yield can sell the October covered call at the $2.50 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 30.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 39.3% annualized rate in the scenario where the stock is not called away..