YieldBoost Gray Television To 22.4% Using Options

Shareholders of Gray Television Inc (GTN) looking to boost their income beyond the stock's 7.1% annualized dividend yield can sell the May 2025 covered call at the $5 strike and collect the premium based on the 35 cents bid, which annualizes to an additional 15.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 22.4% annualized rate in the scenario where the stock is not called away. Any upside above $5 would be lost if the stock rises there and is called away, but GTN shares would have to climb 10.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 18.6% return from this trading level, in addition to any dividends collected before the stock was called.