YieldBoost BKI From 1% To 1.9%

Shareholders of Buckeye Technologies Inc. (NYSE: BKI) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2014 covered call at the $40 strike and collect the premium based on the 15 cents bid, which annualizes to an additional 0.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 1.9% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be ...