Strategy To YieldBoost BLMN To 10.1% Using Options

Shareholders of Bloomin' Brands Inc. (BLMN) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2016 covered call at the $25 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 9.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.1% annualized rate in the scenario where the stock is not called away..
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