Strategy To YieldBoost NYCB From 6.6% To 11.9%

Shareholders of New York Community Bancorp Inc. (NYSE: NYCB) looking to boost their income beyond the stock's 6.6% annualized dividend yield can sell the October covered call at the $16 strike and collect the premium based on the 15 cents bid, which annualizes to an additional 5.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.9% annualized rate in the scenario where the stock is not called away. Any upside above $16 woul...