How To YieldBoost Vornado Realty Trust To 7.8% Using Options

Shareholders of Vornado Realty Trust (VNO) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the July 2025 covered call at the $35 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 6.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.8% annualized rate in the scenario where the stock is not called away. Any upside above $35 would be lost if the stock rises there and is called away, but VNO shares would have to advance 36.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 43.6% return from this trading level, in addition to any dividends collected before the stock was called.