Shareholders of Cactus Inc (WHD) looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the August covered call at the $65 strike and collect the premium based on the $3.50 bid, which annualizes to an additional 10.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.8% annualized rate in the scenario where the stock is not called away. Any upside above $65 would be lost if the stock rises there and is called away, but WHD shares would have to climb 9.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 14.9% return from this trading level, in addition to any dividends collected before the stock was called.