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YieldBoost Advanced Energy Industries To 12.5% Using Options

Shareholders of Advanced Energy Industries Inc (AEIS) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the April 2026 covered call at the $175 strike and collect the premium based on the $11.40 bid, which annualizes to an additional 12.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.5% annualized rate in the scenario where the stock is not called away. Any upside above $175 would be lost if the stock rises there and is called away, but AEIS shares would have to climb 11.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 18.8% return from this trading level, in addition to any dividends collected before the stock was called.

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Advanced Energy Industries, Inc. (AEIS)