YieldBoost ALTG To 15.8% Using Options

Shareholders of Alta Equipment Group Inc (ALTG) looking to boost their income beyond the stock's 2.9% annualized dividend yield can sell the May 2025 covered call at the $10 strike and collect the premium based on the 45 cents bid, which annualizes to an additional 12.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.8% annualized rate in the scenario where the stock is not called away. Any upside above $10 would be lost if the stock rises there and is called away, but ALTG shares would have to advance 28.4% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 34.1% return from this trading level, in addition to any dividends collected before the stock was called.