YieldBoost CI To 4.3% Using Options

Shareholders of The Cigna Group (CI) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the December 2026 covered call at the $440 strike and collect the premium based on the $21.00 bid, which annualizes to an additional 2.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 4.3% annualized rate in the scenario where the stock is not called away. Any upside above $440 would be lost if the stock rises there and is called away, but CI shares would have to climb 29% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 35.2% return from this trading level, in addition to any dividends collected before the stock was called.