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How To YieldBoost ARCB From 0.3% To 7.9% Using Options

Shareholders of ArcBest Corp (ARCB) looking to boost their income beyond the stock's 0.3% annualized dividend yield can sell the January 2026 covered call at the $185 strike and collect the premium based on the $18.00 bid, which annualizes to an additional 7.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.9% annualized rate in the scenario where the stock is not called away. Any upside above $185 would be lost if the stock rises there and is called away, but ARCB shares would have to advance 35.2% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 48.4% return from this trading level, in addition to any dividends collected before the stock was called.

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ArcBest Corporation (ARCB)