YieldBoost options strategy

What happened: A series of bullish articles emerged between June 15 and July 5, detailing options strategies to significantly boost yields for several stocks. These strategies, known as "YieldBoost", involve selling covered calls and buying protective puts to generate substantial income. The proposed annualized rates range from 9.9% for Caterpillar (CC) to 48% for W&T Offshore (WTI), with the stocks needing to rise by 119.5% to 17.9% respectively to trigger early call-away scenarios.

Market impact: This narrative affects investors seeking high yields in the current low-interest rate environment. It encourages a bullish stance on the mentioned companies: Wabash National (WNC), TROX, Kohl's (KSS), Caterpillar (CC), Coeur Mining (CDE), and W&T Offshore (WTI). By employing these options strategies, investors can potentially enhance their income while maintaining some downside protection. However, these strategies also cap potential upside if the stocks rally significantly.

What to watch next: Investors should monitor the upcoming earnings reports for these companies. Wabash National reports on August 5, while Caterpillar and Kohl's report on July 24 and July 29 respectively. Additionally, keep an eye on the overall market sentiment and volatility levels, as these can impact the profitability and feasibility of these YieldBoost strategies.