Strategy To YieldBoost Perella Weinberg Partners To 10.1% Using Options

Shareholders of Perella Weinberg Partners (PWP) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the July 2025 covered call at the $30 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 9% 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 $30 would be lost if the stock rises there and is called away, but PWP shares would have to climb 18.9% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 24.9% return from this trading level, in addition to any dividends collected before the stock was called.