YieldBoost UTZ From 1.4% To 10.4% Using Options

Shareholders of Utz Brands Inc (UTZ) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the June 2025 covered call at the $20 strike and collect the premium based on the 90 cents bid, which annualizes to an additional 9.1% 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 $20 would be lost if the stock rises there and is called away, but UTZ shares would have to climb 14.7% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 19.8% return from this trading level, in addition to any dividends collected before the stock was called.