How To YieldBoost Toro To 15.7%

Shareholders of Toro Co. (NYSE: TTC) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the September covered call at the $50 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 14.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.7% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the stoc...