Strategy To YieldBoost CenturyLink From 6.6% To 10.9%

Shareholders of CenturyLink (NYSE: CTL) looking to boost their income beyond the stock's 6.6% annualized dividend yield can sell the January 2015 covered call at the $35 strike and collect the premium based on the $1.90 bid, which annualizes to an additional 4.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.9% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the st...