YieldBoost Tronox Holdings From 4.8% To 19.5% Using Options

Shareholders of Tronox Holdings PLC (TROX) looking to boost their income beyond the stock's 4.8% annualized dividend yield can sell the May 2025 covered call at the $12 strike and collect the premium based on the 60 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 19.5% annualized rate in the scenario where the stock is not called away. Any upside above $12 would be lost if the stock rises there and is called away, but TROX shares would have to advance 14% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 19.7% return from this trading level, in addition to any dividends collected before the stock was called.