Shareholders of Penske Automotive Group Inc (PAG) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the May 2024 covered call at the $180 strike and collect the premium based on the $17.90 bid, which annualizes to an additional 12.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.8% annualized rate in the scenario where the stock is not called away. Any upside above $180 would be lost if the stock rises there and is called away, but PAG shares would have to advance 3.7% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 14% return from this trading level, in addition to any dividends collected before the stock was called. Read More »