YieldBoost HRL To 5.3% Using Options

Shareholders of Hormel Foods Corp. (HRL) looking to boost their income beyond the stock's 2% annualized dividend yield can sell the January 2018 covered call at the $37.50 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 3.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.3% annualized rate in the scenario where the stock is not called away..