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Strategy To YieldBoost JJSF To 14.6% Using Options

Shareholders of J&J Snack Foods Corp. (JJSF) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the May covered call at the $220 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 12.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.6% annualized rate in the scenario where the stock is not called away..
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