How To YieldBoost Blackrock From 2.4% To 8.3% Using Options

Shareholders of Blackrock Inc. (BLK) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the January 2016 covered call at the $380 strike and collect the premium based on the $13.50 bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.3% annualized rate in the scenario where the stock is not called away..