Shareholders of Sapiens International Corp NV (SPNS) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the December covered call at the $35 strike and collect the premium based on the $1.80 bid, which annualizes to an additional 15.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.9% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the stock rises there and is called away, but SPNS shares would have to climb 21.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 27.6% return from this trading level, in addition to any dividends collected before the stock was called.

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