How To YieldBoost CYS Investments To 30.1% Using Options

Shareholders of CYS Investments, Inc. (NYSE: CYS) looking to boost their income beyond the stock’s 17.2% annualized dividend yield can sell the January 2014 covered call at the $8 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 12.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 30.1% annualized rate in the scenario where the stock is not called away. Any upside above $8 would be lost if the stock rises there and is called away, but CYS shares would have to climb 7.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 8.2% return from this trading level, in addition to any dividends collected before the stock was called.

http://www.forbes.com/sites/stockoptionschannel/2013/12/30/how-to-yieldboost-cys-investments-to-30-1-using-options/