How To YieldBoost NKE From 2.1% To 7.6% Using Options

Shareholders of Nike (NKE) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the January 2027 covered call at the $95 strike and collect the premium based on the $8.70 bid, which annualizes to an additional 5.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.6% annualized rate in the scenario where the stock is not called away. Any upside above $95 would be lost if the stock rises there and is called away, but NKE shares would have to advance 23.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 35.1% return from this trading level, in addition to any dividends collected before the stock was called.