Shareholders of Cracker Barrel Old Country Store Inc (CBRL) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the December 2027 covered call at the $95 strike and collect the premium based on the $9.40 bid, which annualizes to an additional 6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.5% annualized rate in the scenario where the stock is not called away. Any upside above $95 would be lost if the stock rises there and is called away, but CBRL shares would have to climb 44.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 58.8% return from this trading level, in addition to any dividends collected before the stock was called.

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