How To YieldBoost Daktronics To 10%

Shareholders of Daktronics Inc. (NASD: DAKT) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the January 2014 covered call at the $12.50 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 7.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away. Any upside above $12.50 would be lo...