How To YieldBoost DKS To 7.2% Using Options

Shareholders of Dick's Sporting Goods, Inc (DKS) looking to boost their income beyond the stock's 2.2% annualized dividend yield can sell the January 2026 covered call at the $280 strike and collect the premium based on the $16.50 bid, which annualizes to an additional 5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.2% annualized rate in the scenario where the stock is not called away. Any upside above $280 would be lost if the stock rises there and is called away, but DKS shares would have to climb 42.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 50.9% return from this trading level, in addition to any dividends collected before the stock was called.