YieldBoost RBC To 7.9%

Shareholders of Regal-Beloit Corp. (NYSE: RBC) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the February 2014 covered call at the $70 strike and collect the premium based on the $2.45 bid, which annualizes to an additional 6.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.9% annualized rate in the scenario where the stock is not called away. Any upside above $70 would be lost if...