YieldBoost ALIT From 2.4% To 695.8% Using Options

Shareholders of Alight Inc (ALIT) looking to boost their income beyond the stock's 2.4% annualized dividend yield can sell the February covered call at the $7 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 693.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 695.8% annualized rate in the scenario where the stock is not called away. Any upside above $7 would be lost if the stock rises there and is called away, but ALIT shares would have to climb 6.4% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 10.2% return from this trading level, in addition to any dividends collected before the stock was called.