YieldBoost ATO To 7.8% Using Options
July 18, 2024 at 11:39 AM EDT
Shareholders of Atmos Energy Corp. (ATO) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the October covered call at the $130 strike and collect the premium based on the $1.65 bid, which annualizes to an additional 5.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.8% annualized rate in the scenario where the stock is not called away..
