YieldBoost Citizens & Northern To 20.9% Using Options

Shareholders of Citizens & Northern Corp (CZNC) looking to boost their income beyond the stock's 6% annualized dividend yield can sell the March 2025 covered call at the $20 strike and collect the premium based on the $1.30 bid, which annualizes to an additional 14.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 20.9% annualized rate in the scenario where the stock is not called away. Any upside above $20 would be lost if the stock rises there and is called away, but CZNC shares would have to advance 6.7% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 13.6% return from this trading level, in addition to any dividends collected before the stock was called.