How To YieldBoost SOI To 15.1% Using Options

Shareholders of Solaris Oilfield Infrastructure Inc (SOI) looking to boost their income beyond the stock's 4.5% annualized dividend yield can sell the February 2025 covered call at the $12.50 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 10.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $12.50 would be lost if the stock rises there and is called away, but SOI shares would have to advance 17.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 24.5% return from this trading level, in addition to any dividends collected before the stock was called.