YieldBoost Kohl's From 2.9% To 11.6% Using Options

Shareholders of Kohl's Corp. (Symbol: KSS) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the December 2027 covered call at the $30 strike and collect the premium based on the $1.87 bid, which annualizes to an additional 8.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 11.6% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but KSS shares would have to advance 72% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 82.