Shareholders of Diversified Healthcare Trust (DHC) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the January 2025 covered call at the $3 strike and collect the premium based on the 30 cents bid, which annualizes to an additional 15.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.6% annualized rate in the scenario where the stock is not called away. Any upside above $3 would be lost if the stock rises there and is called away, but DHC shares would have to climb 28.8% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 41.6% return from this trading level, in addition to any dividends collected before the stock was called.