How To YieldBoost RPC From 2.8% To 23.6%

Shareholders of RPC, Inc. (NYSE: RES) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the August covered call at the $15 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 20.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 23.6% annualized rate in the scenario where the stock is not called away. Any upside above $15 would be lost if the stock ...