YieldBoost CDI From 3.4% To 10.6% Using Options

Shareholders of CDI Corp. (NYSE: CDI) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the February 2015 covered call at the $17.50 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 7.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% annualized rate in the scenario where the stock is not called away. Any upside above $17.50 would be lost i...