Strategy To YieldBoost PulteGroup To 3.4% Using Options

Shareholders of PulteGroup, Inc. (PHM) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2016 covered call at the $27 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 2.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.4% annualized rate in the scenario where the stock is not called away..