How To YieldBoost Westar Energy To 5.1%

Shareholders of Westar Energy Inc (NYSE: WR) looking to boost their income beyond the stock's 4.1% annualized dividend yield can sell the March 2014 covered call at the $35 strike and collect the premium based on the 20 cents bid, which annualizes to an additional 1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.1% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the...