Shareholders of Culp Inc (CFI) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the July covered call at the $35 strike and collect the premium based on the $2.05 bid, which annualizes to an additional 15.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 16.1% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the stock rises there and is called away, but CFI shares would have to climb 4.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 10.6% return from this trading level, in addition to any dividends collected before the stock was called.