YieldBoost Ameriprise Financial To 13.7% Using Options

Shareholders of Ameriprise Financial Inc (AMP) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the March 2025 covered call at the $580 strike and collect the premium based on the $24.90 bid, which annualizes to an additional 12.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.7% annualized rate in the scenario where the stock is not called away. Any upside above $580 would be lost if the stock rises there and is called away, but AMP shares would have to climb 2.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 7.3% return from this trading level, in addition to any dividends collected before the stock was called.