How To YieldBoost ADTN From 1.3% To 16.7%

Shareholders of Adtran (NASD: ADTN) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2014 covered call at the $29 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 15.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.7% annualized rate in the scenario where the stock is not called away. Any upside above $29 would be lost if the stock...