How To YieldBoost NiSource To 8% Using Options

Shareholders of NiSource Inc. (NI) looking to boost their income beyond the stock's 3.5% annualized dividend yield can sell the January 2022 covered call at the $27 strike and collect the premium based on the 50 cents bid, which annualizes to an additional 4.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8% annualized rate in the scenario where the stock is not called away..