How To YieldBoost MRO From 1.6% To 7.1% Using Options
November 13, 2024 at 11:38 AM EST
Shareholders of Marathon Oil Corp. (MRO) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2026 covered call at the $32 strike and collect the premium based on the $1.82 bid, which annualizes to an additional 5.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.1% annualized rate in the scenario where the stock is not called away..
