Shareholders of Allient Inc (ALNT) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the July covered call at the $45 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 29.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 29.5% annualized rate in the scenario where the stock is not called away. Any upside above $45 would be lost if the stock rises there and is called away, but ALNT shares would have to advance 15.3% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 15.9% return from this trading level, in addition to any dividends collected before the stock was called.

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