Shareholders of Williams Cos Inc (WMB) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the March 2026 covered call at the $65 strike and collect the premium based on the $1.85 bid, which annualizes to an additional 6.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.6% annualized rate in the scenario where the stock is not called away. Any upside above $65 would be lost if the stock rises there and is called away, but WMB shares would have to climb 10.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 13.2% return from this trading level, in addition to any dividends collected before the stock was called.

Read full article here »