YieldBoost BRCD To 6.8% Using Options

Shareholders of Brocade Communications Systems, Inc. (BRCD) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the January 2017 covered call at the $12 strike and collect the premium based on the 37 cents bid, which annualizes to an additional 5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.8% annualized rate in the scenario where the stock is not called away..