YieldBoost TECH To 11.2% Using Options

Shareholders of Bio-Techne Corp (TECH) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the January 2025 covered call at the $85 strike and collect the premium based on the $2.65 bid, which annualizes to an additional 10.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.2% annualized rate in the scenario where the stock is not called away. Any upside above $85 would be lost if the stock rises there and is called away, but TECH shares would have to climb 9.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 13.2% return from this trading level, in addition to any dividends collected before the stock was called.