How To YieldBoost ONEOK From 2.8% To 10% Using Options

Shareholders of ONEOK Inc. (NYSE: OKE) looking to boost their income beyond the stock's 2.8% annualized dividend yield can sell the April 2014 covered call at the $57.50 strike and collect the premium based on the $1.95 bid, which annualizes to an additional 7.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away. Any upside above $57.50 would be lost if the s...