Strategy To YieldBoost CF From 2.7% To 7.8% Using Options

Shareholders of CF Industries Holdings Inc (CF) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the January 2026 covered call at the $92.50 strike and collect the premium based on the $5.90 bid, which annualizes to an additional 5.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.8% annualized rate in the scenario where the stock is not called away. Any upside above $92.50 would be lost if the stock rises there and is called away, but CF shares would have to climb 26.7% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 34.7% return from this trading level, in addition to any dividends collected before the stock was called.