How To YieldBoost FirstMerit Corp From 2.9% To 20%

Shareholders of FirstMerit Corp (NASD: FMER) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the September covered call at the $22.50 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 17.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20% annualized rate in the scenario where the stock is not called away. Any upside above $22.50 would be lost...