YieldBoost Matador Resources From 1.7% To 6.2% Using Options

Shareholders of Matador Resources Co (MTDR) looking to boost their income beyond the stock's 1.7% annualized dividend yield can sell the January 2027 covered call at the $80 strike and collect the premium based on the $5.10 bid, which annualizes to an additional 4.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.2% annualized rate in the scenario where the stock is not called away. Any upside above $80 would be lost if the stock rises there and is called away, but MTDR shares would have to climb 36.3% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 45% return from this trading level, in addition to any dividends collected before the stock was called.