YieldBoost Daktronics From 3.7% To 9.4% Using Options

Shareholders of Daktronics Inc. (DAKT) looking to boost their income beyond the stock's 3.7% annualized dividend yield can sell the January 2016 covered call at the $12.50 strike and collect the premium based on the 40 cents bid, which annualizes to an additional 5.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.4% annualized rate in the scenario where the stock is not called away..