Shareholders of Designer Brands Inc (Symbol: DBI) looking to boost their income beyond the stock's 3.3% annualized dividend yield can sell the December 2027 covered call at the $10 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 11.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 14.7% annualized rate in the scenario where the stock is not called away. Any upside above $10 would be lost if the stock rises there and is called away, but DBI shares would have to advance 65.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 79.
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