YieldBoost AVB To 12.8% Using Options

Shareholders of AvalonBay Communities, Inc. (AVB) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the July covered call at the $200 strike and collect the premium based on the $5.80 bid, which annualizes to an additional 9.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.8% annualized rate in the scenario where the stock is not called away..