How To YieldBoost A10 Networks To 10.6% Using Options

Shareholders of A10 Networks Inc (ATEN) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the May 2025 covered call at the $20 strike and collect the premium based on the 70 cents bid, which annualizes to an additional 9.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.6% 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 ATEN shares would have to climb 18.3% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 22.4% return from this trading level, in addition to any dividends collected before the stock was called.