How To YieldBoost PLD To 6.2% Using Options

Shareholders of Prologis Inc (PLD) looking to boost their income beyond the stock's 3.3% annualized dividend yield can sell the January 2027 covered call at the $150 strike and collect the premium based on the $7.10 bid, which annualizes to an additional 2.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away. Any upside above $150 would be lost if the stock rises there and is called away, but PLD shares would have to advance 30.2% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 36.3% return from this trading level, in addition to any dividends collected before the stock was called.