And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to lose 13.84% to reach the $120 strike price. In the case of UnitedHealth Group Inc, looking at the dividend history chart for UNH below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.8% annualized dividend yield. Selling the covered call at the $145 strike and collecting the premium based on the $4.50 bid, annualizes to an additional 6.9% rate of return against the current stock price (this is what we at Stock Options Channel refer to as the YieldBoost ), for a total of 8.7% annualized rate in the scenario where the stock is not called away.