How To YieldBoost SHEN To 15.5% Using Options

Shareholders of Shenandoah Telecommunications Co (SHEN) looking to boost their income beyond the stock's 0.7% annualized dividend yield can sell the April 2025 covered call at the $15 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 14.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.5% annualized rate in the scenario where the stock is not called away. Any upside above $15 would be lost if the stock rises there and is called away, but SHEN shares would have to climb 11.7% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 16.9% return from this trading level, in addition to any dividends collected before the stock was called.