YieldBoost US Ecology From 1.4% To 10.2% Using Options

Shareholders of US Ecology, Inc. (NASD: ECOL) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the March 2015 covered call at the $55 strike and collect the premium based on the $1.70 bid, which annualizes to an additional 8.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away. Any upside above $55 would be lost if th...