How To YieldBoost Alliant Energy To 5.8% Using Options

Shareholders of Alliant Energy Corp (LNT) looking to boost their income beyond the stock's 3.2% annualized dividend yield can sell the July 2025 covered call at the $60 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 2.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away. Any upside above $60 would be lost if the stock rises there and is called away, but LNT shares would have to climb 0.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 2.2% return from this trading level, in addition to any dividends collected before the stock was called.