YieldBoost MGRC From 2.8% To 16.2%

Shareholders of McGrath RentCorp (NASD: MGRC) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the September covered call at the $35 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 13.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.2% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if...