Shareholders of Herc Holdings Inc (HRI) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the December 2026 covered call at the $165 strike and collect the premium based on the $16.50 bid, which annualizes to an additional 10.3% 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 $165 would be lost if the stock rises there and is called away, but HRI shares would have to advance 29% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 41.9% return from this trading level, in addition to any dividends collected before the stock was called.

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