How To YieldBoost Science Applications International To 10.1% Using Options

Shareholders of Science Applications International Corp (NYSE: SAIC) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the February 2015 covered call at the $50 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 7.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.1% annualized rate in the scenario where the stock is not called away. Any upside abo...