YieldBoost Humana To 6.3%

Shareholders of Humana Inc. (NYSE: HUM) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2015 covered call at the $110 strike and collect the premium based on the $6.80 bid, which annualizes to an additional 5.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.3% annualized rate in the scenario where the stock is not called away. Any upside above $110 would be lost if the s...