YieldBoost Advanced Energy Industries To 10.2% Using Options

Shareholders of Advanced Energy Industries Inc (AEIS) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the April 2025 covered call at the $120 strike and collect the premium based on the $6.50 bid, which annualizes to an additional 9.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away. Any upside above $120 would be lost if the stock rises there and is called away, but AEIS shares would have to climb 14.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 20.8% return from this trading level, in addition to any dividends collected before the stock was called.