Shareholders of Matador Resources Co (MTDR) looking to boost their income beyond the stock's 3.8% annualized dividend yield can sell the March 2026 covered call at the $42.50 strike and collect the premium based on the $3.00 bid, which annualizes to an additional 19.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 23.1% annualized rate in the scenario where the stock is not called away. Any upside above $42.50 would be lost if the stock rises there and is called away, but MTDR shares would have to advance 6.7% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 14.2% return from this trading level, in addition to any dividends collected before the stock was called.

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