YieldBoost ASC To 13.9% Using Options

Shareholders of Ardmore Shipping Corp (ASC) looking to boost their income beyond the stock's 5.9% annualized dividend yield can sell the July 2025 covered call at the $15 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.9% 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 ASC shares would have to advance 23.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 27.6% return from this trading level, in addition to any dividends collected before the stock was called.