How To YieldBoost EGY From 3.6% To 13.6% Using Options

Shareholders of VAALCO Energy, Inc. (EGY) looking to boost their income beyond the stock's 3.6% annualized dividend yield can sell the January 2025 covered call at the $8 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 10% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.6% annualized rate in the scenario where the stock is not called away..