YieldBoost Knight Transportation From 0.7% To 9% Using Options

Shareholders of Knight Transportation Inc. (NYSE: KNX) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the June 2015 covered call at the $35 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 8.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost ...