Strategy To YieldBoost Airgas To 9.2% Using Options

Shareholders of Airgas (NYSE: ARG) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the February 2014 covered call at the $115 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 7.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.2% annualized rate in the scenario where the stock is not called away. Any upside above $115 would be lost if the stock...