YieldBoost CONSOL Energy From 0.9% To 8.8% Using Options

Shareholders of CONSOL Energy Inc (CEIX) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the December covered call at the $125 strike and collect the premium based on the $8.10 bid, which annualizes to an additional 7.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.8% annualized rate in the scenario where the stock is not called away. Any upside above $125 would be lost if the stock rises there and is called away, but CEIX shares would have to climb 16% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 23.6% return from this trading level, in addition to any dividends collected before the stock was called.