Strategy To YieldBoost SHLM From 2.1% To 21.7% Using Options

Shareholders of A. Schulman, Inc. (NASD: SHLM) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the January 2015 covered call at the $40 strike and collect the premium based on the 60 cents bid, which annualizes to an additional 19.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 21.7% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be los...