YieldBoost DUK From 3.7% To 10.3% Using Options

Shareholders of Duke Energy Corp (DUK) looking to boost their income beyond the stock's 3.7% annualized dividend yield can sell the June 2025 covered call at the $115 strike and collect the premium based on the $6.00 bid, which annualizes to an additional 6.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.3% annualized rate in the scenario where the stock is not called away. Any upside above $115 would be lost if the stock rises there and is called away, but DUK shares would have to advance 2.2% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 7.5% return from this trading level, in addition to any dividends collected before the stock was called.