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YieldBoost BKNG To 3.6% Using Options

Shareholders of Booking Holdings Inc (BKNG) looking to boost their income beyond the stock's 1% annualized dividend yield can sell the January 2026 covered call at the $5150 strike and collect the premium based on the $168.00 bid, which annualizes to an additional 2.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 3.6% annualized rate in the scenario where the stock is not called away. Any upside above $5150 would be lost if the stock rises there and is called away, but BKNG shares would have to advance 45.9% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 50.7% return from this trading level, in addition to any dividends collected before the stock was called.
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