Strategy To YieldBoost Shoe Carnival To 13.7% Using Options

Shareholders of Shoe Carnival, Inc. (SCVL) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the September covered call at the $30 strike and collect the premium based on the $1.20 bid, which annualizes to an additional 12.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.7% annualized rate in the scenario where the stock is not called away..