How To YieldBoost Nexstar Media Group To 11.7% Using Options

Shareholders of Nexstar Media Group Inc (NXST) looking to boost their income beyond the stock's 4% annualized dividend yield can sell the December 2025 covered call at the $195 strike and collect the premium based on the $14.10 bid, which annualizes to an additional 7.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.7% annualized rate in the scenario where the stock is not called away. Any upside above $195 would be lost if the stock rises there and is called away, but NXST shares would have to climb 14.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 22.5% return from this trading level, in addition to any dividends collected before the stock was called.