How To YieldBoost Johnson Controls International To 6.5% Using Options

Shareholders of Johnson Controls International plc (JCI) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the January 2027 covered call at the $95 strike and collect the premium based on the $7.80 bid, which annualizes to an additional 4.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.5% 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 JCI shares would have to climb 17.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 27% return from this trading level, in addition to any dividends collected before the stock was called.