Shareholders of FTAI Infrastructure Inc (FIP) looking to boost their income beyond the stock's 1.8% annualized dividend yield can sell the December covered call at the $9 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 12% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.8% annualized rate in the scenario where the stock is not called away. Any upside above $9 would be lost if the stock rises there and is called away, but FIP shares would have to advance 35.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 39.9% return from this trading level, in addition to any dividends collected before the stock was called.

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