Back to top

How To YieldBoost Archrock To 11.7% Using Options

Shareholders of Archrock Inc (AROC) looking to boost their income beyond the stock's 3.5% annualized dividend yield can sell the May 2026 covered call at the $30 strike and collect the premium based on the $1.15 bid, which annualizes to an additional 8.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.7% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but AROC shares would have to climb 24.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 29.4% return from this trading level, in addition to any dividends collected before the stock was called.

Read full article here »

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Archrock, Inc. (AROC)