YieldBoost National Research From 1.5% To 748.1% Using Options

Shareholders of National Research Corp (NRC) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the June covered call at the $50 strike and collect the premium based on the $20.00 bid, which annualizes to an additional 746.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 748.1% annualized rate in the scenario where the stock is not called away. Any upside above $50 would be lost if the stock rises there and is called away, but NRC shares would have to climb 58.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 121.9% return from this trading level, in addition to any dividends collected before the stock was called.