How To YieldBoost Elevance Health From 1.2% To 5.8% Using Options

Shareholders of Elevance Health Inc (ELV) looking to boost their income beyond the stock's 1.2% annualized dividend yield can sell the January 2026 covered call at the $610 strike and collect the premium based on the $41.40 bid, which annualizes to an additional 4.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5.8% annualized rate in the scenario where the stock is not called away. Any upside above $610 would be lost if the stock rises there and is called away, but ELV shares would have to climb 16.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 24% return from this trading level, in addition to any dividends collected before the stock was called.