Shareholders of Nordic American Tankers Ltd (NAT) looking to boost their income beyond the stock's 10.2% annualized dividend yield can sell the January 2026 covered call at the $3 strike and collect the premium based on the 20 cents bid, which annualizes to an additional 15.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 25.9% annualized rate in the scenario where the stock is not called away. Any upside above $3 would be lost if the stock rises there and is called away, but NAT shares would have to advance 9.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 16.4% return from this trading level, in addition to any dividends collected before the stock was called.

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