How To YieldBoost Americold Realty Trust To 90.8% Using Options

Shareholders of Americold Realty Trust Inc (COLD) looking to boost their income beyond the stock's 4.2% annualized dividend yield can sell the February covered call at the $25 strike and collect the premium based on the 10 cents bid, which annualizes to an additional 86.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 90.8% annualized rate in the scenario where the stock is not called away. Any upside above $25 would be lost if the stock rises there and is called away, but COLD shares would have to advance 18.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 19.1% return from this trading level, in addition to any dividends collected before the stock was called.