How To YieldBoost BEPC From 5% To 18.8% Using Options

Shareholders of Brookfield Renewable Corp (BEPC) looking to boost their income beyond the stock's 5% annualized dividend yield can sell the December covered call at the $30 strike and collect the premium based on the $1.30 bid, which annualizes to an additional 13.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.8% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but BEPC shares would have to climb 7.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 11.7% return from this trading level, in addition to any dividends collected before the stock was called.