How To YieldBoost AEIS To 8.1% Using Options

Shareholders of Advanced Energy Industries Inc (AEIS) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the December 2025 covered call at the $135 strike and collect the premium based on the $9.50 bid, which annualizes to an additional 7.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.1% annualized rate in the scenario where the stock is not called away. Any upside above $135 would be lost if the stock rises there and is called away, but AEIS shares would have to advance 15.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 24% return from this trading level, in addition to any dividends collected before the stock was called.