How To YieldBoost PHINIA From 1.9% To 12.4% Using Options

Shareholders of PHINIA Inc (PHIN) looking to boost their income beyond the stock's 1.9% annualized dividend yield can sell the May 2025 covered call at the $60 strike and collect the premium based on the $2.70 bid, which annualizes to an additional 10.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.4% 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 PHIN shares would have to climb 13.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 18.6% return from this trading level, in addition to any dividends collected before the stock was called.