YieldBoost Omnicare From 1.2% To 4.7%

Shareholders of Omnicare Inc. (NYSE: OCR) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2015 covered call at the $60 strike and collect the premium based on the $2.65 bid, which annualizes to an additional 3.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.7% annualized rate in the scenario where the stock is not called away. Any upside above $60 would be lost if the s...