YieldBoost Monotype Imaging Holdings From 1.1% To 9.8% Using Options

Shareholders of Monotype Imaging Holdings (NASD: TYPE) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the February 2015 covered call at the $30 strike and collect the premium based on the $1.45 bid, which annualizes to an additional 8.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.8% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be...