How To YieldBoost Juniper Networks To 2.6% Using Options

Shareholders of Juniper Networks Inc (JNPR) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the June 2025 covered call at the $40 strike and collect the premium based on the 10 cents bid, which annualizes to an additional 0.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 2.6% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stock rises there and is called away, but JNPR shares would have to advance 3.6% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 3.9% return from this trading level, in addition to any dividends collected before the stock was called.