Strategy To YieldBoost Trinity Industries To 13.9%

Shareholders of Trinity Industries, Inc. (NYSE: TRN) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the January 2014 covered call at the $39 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 12.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.9% annualized rate in the scenario where the stock is not called away. Any upside above $39 would be ...