How To YieldBoost SPLS To 7.1%

Shareholders of Staples Inc (NASD: SPLS) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the January 2015 covered call at the $17 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 3.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.1% annualized rate in the scenario where the stock is not called away. Any upside above $17 would be lost if the...