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How To YieldBoost P10 From 1.3% To 11% Using Options

Shareholders of P10 Inc Class A (PX) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the April 2025 covered call at the $12.50 strike and collect the premium based on the 60 cents bid, which annualizes to an additional 9.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11% annualized rate in the scenario where the stock is not called away. Any upside above $12.50 would be lost if the stock rises there and is called away, but PX shares would have to climb 17.4% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 23% return from this trading level, in addition to any dividends collected before the stock was called.
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