YieldBoost Evergy Inc To 5% Using Options

Shareholders of Evergy Inc (EVRG) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the June covered call at the $60 strike and collect the premium based on the 15 cents bid, which annualizes to an additional 1.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5% annualized rate in the scenario where the stock is not called away. Any upside above $60 would be lost if the stock rises there and is called away, but EVRG shares would have to climb 6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 6.3% return from this trading level, in addition to any dividends collected before the stock was called.