YieldBoost GPN To 6.9% Using Options

Shareholders of Global Payments Inc (GPN) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the January 2027 covered call at the $135 strike and collect the premium based on the $14.10 bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.9% annualized rate in the scenario where the stock is not called away. Any upside above $135 would be lost if the stock rises there and is called away, but GPN shares would have to advance 19.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 31.5% return from this trading level, in addition to any dividends collected before the stock was called.