Strategy To YieldBoost Weight Watchers International To 5.5%

Shareholders of Weight Watchers International (NYSE: WTW) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the January 2016 covered call at the $55 strike and collect the premium based on the $3.20 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 5.5% annualized rate in the scenario where the stock is not called away. Any upside above $55 would ...