Strategy To YieldBoost PartnerRe From 2.5% To 18.6% Using Options

Shareholders of PartnerRe Ltd. (PRE) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the March covered call at the $125 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 16.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.6% annualized rate in the scenario where the stock is not called away..