How To YieldBoost Argan From 1.1% To 23.5% Using Options

Shareholders of Argan Inc (AGX) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the July 2025 covered call at the $160 strike and collect the premium based on the $17.00 bid, which annualizes to an additional 22.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 23.5% annualized rate in the scenario where the stock is not called away. Any upside above $160 would be lost if the stock rises there and is called away, but AGX shares would have to climb 15.5% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 27.8% return from this trading level, in addition to any dividends collected before the stock was called.