Strategy To YieldBoost Steelcase To 7.4%

Shareholders of Steelcase, Inc. (NYSE: SCS) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the January 2014 covered call at the $17.50 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 4.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.4% annualized rate in the scenario where the stock is not called away. Any upside above $17.50 would be lo...