How To YieldBoost EXC From 4.3% To 7% Using Options

Shareholders of Exelon Corp (EXC) looking to boost their income beyond the stock's 4.3% annualized dividend yield can sell the January 2026 covered call at the $42 strike and collect the premium based on the $1.50 bid, which annualizes to an additional 2.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7% annualized rate in the scenario where the stock is not called away. Any upside above $42 would be lost if the stock rises there and is called away, but EXC shares would have to climb 20.2% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 24.5% return from this trading level, in addition to any dividends collected before the stock was called.