Shareholders of Designer Brands Inc (DBI) looking to boost their income beyond the stock's 3.3% annualized dividend yield can sell the April 2025 covered call at the $7 strike and collect the premium based on the 60 cents bid, which annualizes to an additional 29.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 32.5% annualized rate in the scenario where the stock is not called away. Any upside above $7 would be lost if the stock rises there and is called away, but DBI shares would have to advance 14% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 23.8% return from this trading level, in addition to any dividends collected before the stock was called.