Strategy To YieldBoost AMETEK To 3.6%

Shareholders of AMETEK, Inc. (NYSE: AME) looking to boost their income beyond the stock's 0.5% annualized dividend yield can sell the March 2014 covered call at the $50 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.6% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the sto...