YieldBoost Diamond Offshore Drilling From 2.2% To 29.5% Using Options

Shareholders of Diamond Offshore Drilling, Inc. (DO) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the March 2016 covered call at the $22.50 strike and collect the premium based on the $1.93 bid, which annualizes to an additional 27.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 29.5% annualized rate in the scenario where the stock is not called away..