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Strategy To YieldBoost AFCG From 12.8% To 27.2% Using Options

Shareholders of Advanced Flower Capital Inc (AFCG) looking to boost their income beyond the stock's 12.8% annualized dividend yield can sell the January 2026 covered call at the $5 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 14.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 27.2% annualized rate in the scenario where the stock is not called away. Any upside above $5 would be lost if the stock rises there and is called away, but AFCG shares would have to advance 7.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 14.6% return from this trading level, in addition to any dividends collected before the stock was called.

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AFC Gamma Inc. (AFCG)