How To YieldBoost KEY From 4.8% To 10.2% Using Options

Shareholders of KeyCorp (KEY) looking to boost their income beyond the stock's 4.8% annualized dividend yield can sell the January 2026 covered call at the $20 strike and collect the premium based on the 97 cents bid, which annualizes to an additional 5.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away. Any upside above $20 would be lost if the stock rises there and is called away, but KEY shares would have to climb 16.3% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 21.9% return from this trading level, in addition to any dividends collected before the stock was called.