How To YieldBoost Synchrony Financial To 5.3% Using Options

Shareholders of Synchrony Financial (SYF) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the January 2027 covered call at the $90 strike and collect the premium based on the $5.20 bid, which annualizes to an additional 3.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.3% annualized rate in the scenario where the stock is not called away. Any upside above $90 would be lost if the stock rises there and is called away, but SYF shares would have to climb 35% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 42.8% return from this trading level, in addition to any dividends collected before the stock was called.