How To YieldBoost eXp World Holdings To 20.3% Using Options

Shareholders of eXp World Holdings Inc (EXPI) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the January 2025 covered call at the $12.50 strike and collect the premium based on the $1.45 bid, which annualizes to an additional 18.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.3% annualized rate in the scenario where the stock is not called away. Any upside above $12.50 would be lost if the stock rises there and is called away, but EXPI shares would have to climb 31.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 46.7% return from this trading level, in addition to any dividends collected before the stock was called.