YieldBoost Ardmore Shipping To 19.3% Using Options

Shareholders of Ardmore Shipping Corp (ASC) looking to boost their income beyond the stock's 8.7% annualized dividend yield can sell the April 2025 covered call at the $20 strike and collect the premium based on the $1.05 bid, which annualizes to an additional 10.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 19.3% annualized rate in the scenario where the stock is not called away. Any upside above $20 would be lost if the stock rises there and is called away, but ASC shares would have to climb 14.1% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 20.1% return from this trading level, in addition to any dividends collected before the stock was called.