How To YieldBoost MKTX To 12.6% Using Options

Shareholders of Marketaxess Holdings Inc (MKTX) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the May 2025 covered call at the $280 strike and collect the premium based on the $14.00 bid, which annualizes to an additional 11.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 12.6% annualized rate in the scenario where the stock is not called away. Any upside above $280 would be lost if the stock rises there and is called away, but MKTX shares would have to climb 6.7% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 12.1% return from this trading level, in addition to any dividends collected before the stock was called.