How To YieldBoost Black Box Corp. To 15.9%

Shareholders of Black Box Corp. (NASD: BBOX) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the December covered call at the $30 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 14.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.9% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the ...