Shareholders of Regal Rexnord Corp (RRX) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the February 2026 covered call at the $165 strike and collect the premium based on the $14.40 bid, which annualizes to an additional 16.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.8% annualized rate in the scenario where the stock is not called away. Any upside above $165 would be lost if the stock rises there and is called away, but RRX shares would have to climb 8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 17.4% return from this trading level, in addition to any dividends collected before the stock was called.

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