Strategy To YieldBoost ROK To 19.1% Using Options

Shareholders of Rockwell Automation, Inc. (ROK) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the February 2025 covered call at the $270 strike and collect the premium based on the $19.30 bid, which annualizes to an additional 17.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.1% annualized rate in the scenario where the stock is not called away..