YieldBoost KLAC From 1.1% To 6.2% Using Options

Shareholders of KLA Corp (KLAC) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2027 covered call at the $920 strike and collect the premium based on the $67.30 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away. Any upside above $920 would be lost if the stock rises there and is called away, but KLAC shares would have to climb 45.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 56.1% return from this trading level, in addition to any dividends collected before the stock was called.