YieldBoost SL Green Realty To 8.2% Using Options

Shareholders of SL Green Realty Corp (SLG) looking to boost their income beyond the stock's 4.2% annualized dividend yield can sell the January 2027 covered call at the $105 strike and collect the premium based on the $6.80 bid, which annualizes to an additional 4.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.2% annualized rate in the scenario where the stock is not called away. Any upside above $105 would be lost if the stock rises there and is called away, but SLG shares would have to climb 45.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 54.9% return from this trading level, in addition to any dividends collected before the stock was called.