YieldBoost WTI From 2.6% To 22.1% Using Options

Shareholders of W & T Offshore Inc (WTI) looking to boost their income beyond the stock's 2.6% annualized dividend yield can sell the April 2025 covered call at the $2 strike and collect the premium based on the 10 cents bid, which annualizes to an additional 19.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22.1% annualized rate in the scenario where the stock is not called away. Any upside above $2 would be lost if the stock rises there and is called away, but WTI shares would have to advance 28.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 34.6% return from this trading level, in addition to any dividends collected before the stock was called.