How To YieldBoost SAFE From 3.1% To 14.8% Using Options

Shareholders of Safehold Inc (SAFE) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the April 2025 covered call at the $25 strike and collect the premium based on the $1.25 bid, which annualizes to an additional 11.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 14.8% annualized rate in the scenario where the stock is not called away. Any upside above $25 would be lost if the stock rises there and is called away, but SAFE shares would have to climb 9.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 14.8% return from this trading level, in addition to any dividends collected before the stock was called.