How To YieldBoost Booking Holdings From 0.7% To 3.7% Using Options

Shareholders of Booking Holdings Inc (Symbol: BKNG) looking to boost their income beyond the stock’s 0.7% annualized dividend yield can sell the December 2026 covered call at the $7400 strike and collect the premium based on the $322.80 bid, which annualizes to an additional 3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.7% annualized rate in the scenario where the stock is not called away. Any upside above $7400 would be lost if the stock rises there and is called away, but BKNG shares would have to climb 40.6% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 46.7% return from this trading level, in addition to any dividends collected before the stock was…