YieldBoost OLED To 18% Using Options

Shareholders of Universal Display Corp (OLED) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the May 2025 covered call at the $200 strike and collect the premium based on the $16.70 bid, which annualizes to an additional 17.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18% annualized rate in the scenario where the stock is not called away. Any upside above $200 would be lost if the stock rises there and is called away, but OLED shares would have to advance 6.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 15.8% return from this trading level, in addition to any dividends collected before the stock was called.