How To YieldBoost PH To 9.4% Using Options

Shareholders of Parker Hannifin Corp (PH) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the December 2025 covered call at the $710 strike and collect the premium based on the $56.70 bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.4% annualized rate in the scenario where the stock is not called away. Any upside above $710 would be lost if the stock rises there and is called away, but PH shares would have to advance 6.4% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 14.9% return from this trading level, in addition to any dividends collected before the stock was called.