Strategy To YieldBoost XRAY From 3.6% To 12.2% Using Options

Shareholders of DENTSPLY SIRONA Inc (XRAY) looking to boost their income beyond the stock's 3.6% annualized dividend yield can sell the April 2025 covered call at the $22.50 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 8.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.2% annualized rate in the scenario where the stock is not called away. Any upside above $22.50 would be lost if the stock rises there and is called away, but XRAY shares would have to climb 25.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 29.1% return from this trading level, in addition to any dividends collected before the stock was called.