Shareholders of Xylem Inc (XYL) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the November covered call at the $135 strike and collect the premium based on the $3.40 bid, which annualizes to an additional 14.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.4% annualized rate in the scenario where the stock is not called away. Any upside above $135 would be lost if the stock rises there and is called away, but XYL shares would have to climb 1.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 4% return from this trading level, in addition to any dividends collected before the stock was called.