YieldBoost Lpl Financial Holdings To 6.4% Using Options

Shareholders of Lpl Financial Holdings Inc (LPLA) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the December 2025 covered call at the $390 strike and collect the premium based on the $20.50 bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.4% annualized rate in the scenario where the stock is not called away. Any upside above $390 would be lost if the stock rises there and is called away, but LPLA shares would have to advance 19.9% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 26.2% return from this trading level, in addition to any dividends collected before the stock was called.