How To YieldBoost Jones Group From 1.4% To 13.2%

Shareholders of Jones Group Inc (NYSE: JNY) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the November covered call at the $16 strike and collect the premium based on the 75 cents bid, which annualizes to an additional 11.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.2% annualized rate in the scenario where the stock is not called away. Any upside above $16 would be lost if th...