How To YieldBoost Packaging Corp of America To 6.3% Using Options

Shareholders of Packaging Corp of America (NYSE: PKG) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the January 2016 covered call at the $72.50 strike and collect the premium based on the $3.30 bid, which annualizes to an additional 3.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.3% annualized rate in the scenario where the stock is not called away. Any upside above $72.50 woul...