YieldBoost ATNI To 34.1% Using Options

Shareholders of ATN International Inc (ATNI) looking to boost their income beyond the stock's 5.1% annualized dividend yield can sell the June covered call at the $30 strike and collect the premium based on the 85 cents bid, which annualizes to an additional 29.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 34.1% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but ATNI shares would have to advance 57.4% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 61.9% return from this trading level, in addition to any dividends collected before the stock was called.