YieldBoost BGC From 0.9% To 9.1% Using Options

Shareholders of Bgc Group Inc - Class A (BGC) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the February 2025 covered call at the $11 strike and collect the premium based on the 40 cents bid, which annualizes to an additional 8.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.1% annualized rate in the scenario where the stock is not called away. Any upside above $11 would be lost if the stock rises there and is called away, but BGC shares would have to advance 17.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 22.1% return from this trading level, in addition to any dividends collected before the stock was called.