How To YieldBoost KapStone Paper & Packaging Corp From 4.6% To 18.2%

Shareholders of KapStone Paper & Packaging Corp (NYSE: KS) looking to boost their income beyond the stock's 4.6% annualized dividend yield can sell the November covered call at the $45 strike and collect the premium based on the $2.05 bid, which annualizes to an additional 13.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.2% annualized rate in the scenario where the stock is not called away. Any upside above $45 would b...