How To YieldBoost Atkore To 11.5% Using Options

Shareholders of Atkore Inc (ATKR) looking to boost their income beyond the stock's 1.5% annualized dividend yield can sell the April 2025 covered call at the $110 strike and collect the premium based on the $5.00 bid, which annualizes to an additional 9.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.5% annualized rate in the scenario where the stock is not called away. Any upside above $110 would be lost if the stock rises there and is called away, but ATKR shares would have to climb 31.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 37.9% return from this trading level, in addition to any dividends collected before the stock was called.