YieldBoost Teekay Tankers To 10.4% Using Options

Shareholders of Teekay Tankers Ltd (TNK) looking to boost their income beyond the stock's 2.7% annualized dividend yield can sell the November 2025 covered call at the $45 strike and collect the premium based on the $2.60 bid, which annualizes to an additional 7.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.4% annualized rate in the scenario where the stock is not called away. Any upside above $45 would be lost if the stock rises there and is called away, but TNK shares would have to advance 24.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 31.2% return from this trading level, in addition to any dividends collected before the stock was called.