Strategy To YieldBoost PRG To 19.4% Using Options

Shareholders of PROG Holdings Inc (PRG) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the July 2025 covered call at the $45 strike and collect the premium based on the $4.30 bid, which annualizes to an additional 18.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.4% annualized rate in the scenario where the stock is not called away. Any upside above $45 would be lost if the stock rises there and is called away, but PRG shares would have to advance 6.9% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 17.1% return from this trading level, in addition to any dividends collected before the stock was called.