How To YieldBoost MLKN From 3.4% To 12.9% Using Options

Shareholders of MillerKnoll Inc (MLKN) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the August 2025 covered call at the $25 strike and collect the premium based on the $1.35 bid, which annualizes to an additional 9.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.9% 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 MLKN shares would have to climb 12.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 18.2% return from this trading level, in addition to any dividends collected before the stock was called.