YieldBoost HEES From 2.5% To 17.5% Using Options

Shareholders of H&E Equipment Services Inc (HEES) looking to boost their income beyond the stock's 2.5% annualized dividend yield can sell the February 2025 covered call at the $47.50 strike and collect the premium based on the $2.90 bid, which annualizes to an additional 15% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.5% annualized rate in the scenario where the stock is not called away. Any upside above $47.50 would be lost if the stock rises there and is called away, but HEES shares would have to advance 10.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 17.1% return from this trading level, in addition to any dividends collected before the stock was called.