YieldBoost Patrick Industries To 12.7% Using Options

Shareholders of Patrick Industries Inc (PATK) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the December 2025 covered call at the $145 strike and collect the premium based on the $15.50 bid, which annualizes to an additional 10.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.7% annualized rate in the scenario where the stock is not called away. Any upside above $145 would be lost if the stock rises there and is called away, but PATK shares would have to advance 12.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 24.8% return from this trading level, in addition to any dividends collected before the stock was called.