This Income Strategy Pays 18%

The stock market is within striking distance of all-time highs. Yet at the same time, yields on bonds and dividend stocks continue to creep lower, making it difficult for investors to generate above-average returns.

In today's video, Matt and Paul beef up the income-generating part of their real-money portfolio by using an options strategy on a favorite stock that happens to be trading near its 52-week low. Not only does the strategy generate an almost 18% annualized yield, but it also gives them the option to buy the stock at even cheaper prices on a market pullback. Get the name and their trade by watching the following video.

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Matthew Argersinger and Paul Chi have no positions in the stocks mentioned above. The Motley Fool owns shares of Activision Blizzard and Electronic Arts. Motley Fool newsletter services recommend Activision Blizzard, Electronic Arts, and Take-Two Interactive . Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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