How To YieldBoost Polaris Industries From 1.3% To 6.2% Using Options

Shareholders of Polaris Industries Inc. (NYSE: PII) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2016 covered call at the $170 strike and collect the premium based on the $8.80 bid, which annualizes to an additional 4.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away. Any upside above $170 would be l...