YieldBoost AAR Corp From 1.3% To 12.7%

Shareholders of AAR Corp (NYSE: AIR) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the November covered call at the $25 strike and collect the premium based on the 95 cents bid, which annualizes to an additional 11.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.7% annualized rate in the scenario where the stock is not called away. Any upside above $25 would be lost if the stock...