Shareholders of DuPont (DD) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the September 2026 covered call at the $85 strike and collect the premium based on the $4.60 bid, which annualizes to an additional 5.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.8% annualized rate in the scenario where the stock is not called away. Any upside above $85 would be lost if the stock rises there and is called away, but DD shares would have to climb 15.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 22.2% return from this trading level, in addition to any dividends collected before the stock was called.

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