YieldBoost RICK From 0.6% To 18.4% Using Options

Shareholders of RCI Hospitality Holdings Inc (RICK) looking to boost their income beyond the stock's 0.6% annualized dividend yield can sell the February 2025 covered call at the $55 strike and collect the premium based on the $2.50 bid, which annualizes to an additional 17.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.4% annualized rate in the scenario where the stock is not called away. Any upside above $55 would be lost if the stock rises there and is called away, but RICK shares would have to climb 8.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 13.9% return from this trading level, in addition to any dividends collected before the stock was called.