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An Example Of Yields From Option Premiums

The following screen capture is a simple and very typical example of the annualized yield rates (see the "Cov Return" columns) in the capture).  The distance out of the money (away from the current market price) and the time duration of the contracts will combine at any given moment to determine the covered return yield rate.  Value based option strategies such as I target in the Engineered Income Investing subscription service here on Seeking Alpha generally will generate 4% to 30% annual yield rates from the covered option premiums.  When done on  covered calls for shares held long, this is additive on top of the dividend yield itself.

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