How To YieldBoost Patterson-UTI Energy From 0.4% To 18.5% Using Options
June 02, 2017 at 11:53 AM EDT
Shareholders of Patterson-UTI Energy Inc. (PTEN) looking to boost their income beyond the stock's 0.4% annualized dividend yield can sell the November covered call at the $22 strike and collect the premium based on the $1.75 bid, which annualizes to an additional 18.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 18.5% annualized rate in the scenario where the stock is not called away..