Strategy To YieldBoost Carpenter Technology Corp. To 15.3% Using Options

Shareholders of Carpenter Technology Corp. (CRS) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the December covered call at the $95 strike and collect the premium based on the $7.80 bid, which annualizes to an additional 14.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.3% annualized rate in the scenario where the stock is not called away..