Strategy To YieldBoost Sysco To 8.9% Using Options

Shareholders of Sysco Corp (SYY) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the January 2026 covered call at the $82.50 strike and collect the premium based on the $5.30 bid, which annualizes to an additional 6.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.9% annualized rate in the scenario where the stock is not called away. Any upside above $82.50 would be lost if the stock rises there and is called away, but SYY shares would have to advance 5.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 12.2% return from this trading level, in addition to any dividends collected before the stock was called.