Shareholders of Tecnoglass Inc (TGLS) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the November covered call at the $80 strike and collect the premium based on the $5.00 bid, which annualizes to an additional 18.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.7% annualized rate in the scenario where the stock is not called away. Any upside above $80 would be lost if the stock rises there and is called away, but TGLS shares would have to climb 7.8% 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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