YieldBoost SEE To 10.6% Using Options

Shareholders of Sealed Air Corp (SEE) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the June 2025 covered call at the $40 strike and collect the premium based on the $2.70 bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stock rises there and is called away, but SEE shares would have to advance 13% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 20.7% return from this trading level, in addition to any dividends collected before the stock was called.