Shareholders of Carter's Inc (CRI) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2022 covered call at the $105 strike and collect the premium based on the $6.80 bid, which annualizes to an additional 16.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.9% annualized rate in the scenario where the stock is not called away. Any upside above $105 would be lost if the stock rises there and is called away, but CRI shares would have to advance 3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 9.7% return from this trading level, in addition to any dividends collected before the stock was called.