YieldBoost JBT From 0.4% To 9% Using Options

Shareholders of John Bean Technologies Corp (JBT) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the April 2025 covered call at the $105 strike and collect the premium based on the $5.10 bid, which annualizes to an additional 8.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9% annualized rate in the scenario where the stock is not called away. Any upside above $105 would be lost if the stock rises there and is called away, but JBT shares would have to climb 16.4% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 22.1% return from this trading level, in addition to any dividends collected before the stock was called.