YieldBoost NXST To 11.9% Using Options

Shareholders of Nexstar Broadcasting Group Inc (NASD: NXST) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the February 2015 covered call at the $45 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 10.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.9% annualized rate in the scenario where the stock is not called away. Any upside above $45 w...