Shareholders of HarborOne Bancorp Inc (HONE) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the September covered call at the $17.50 strike and collect the premium based on the 5 cents bid, which annualizes to an additional 68.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 71.3% annualized rate in the scenario where the stock is not called away. Any upside above $17.50 would be lost if the stock rises there and is called away, but HONE shares would have to advance 31.6% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 32% return from this trading level, in addition to any dividends collected before the stock was called.

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