How To YieldBoost Colgate-Palmolive From 2.2% To 3.9% Using Options

Shareholders of Colgate-Palmolive Co. (CL) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the January 2018 covered call at the $80 strike and collect the premium based on the $2.13 bid, which annualizes to an additional 1.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.9% annualized rate in the scenario where the stock is not called away..