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YieldBoost SIGA From 9.6% To 17.2% Using Options

Shareholders of SIGA Technologies Inc (SIGA) looking to boost their income beyond the stock's 9.6% annualized dividend yield can sell the January 2026 covered call at the $10 strike and collect the premium based on the 55 cents bid, which annualizes to an additional 7.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 17.2% annualized rate in the scenario where the stock is not called away. Any upside above $10 would be lost if the stock rises there and is called away, but SIGA shares would have to climb 60.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 69.6% return from this trading level, in addition to any dividends collected before the stock was called.
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