YieldBoost PTEN To 21.4% Using Options
September 09, 2024 at 11:32 AM EDT
Shareholders of Patterson-UTI Energy Inc. (PTEN) looking to boost their income beyond the stock's 3.9% annualized dividend yield can sell the February 2025 covered call at the $9 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 17.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 21.4% annualized rate in the scenario where the stock is not called away..
