How To YieldBoost Caleres From 1% To 10.1% Using Options

Shareholders of Caleres Inc (CAL) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the October 2025 covered call at the $35 strike and collect the premium based on the $2.15 bid, which annualizes to an additional 9.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.1% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the stock rises there and is called away, but CAL shares would have to advance 26% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 33.8% return from this trading level, in addition to any dividends collected before the stock was called.