Strategy To YieldBoost OFG Bancorp To 8.1%

Shareholders of OFG Bancorp (NYSE: OFG) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the November covered call at the $20 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 6.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.1% annualized rate in the scenario where the stock is not called away. Any upside above $20 would be lost if the stoc...