How To YieldBoost Camden Property Trust To 6.6% Using Options

Shareholders of Camden Property Trust (CPT) looking to boost their income beyond the stock's 3.4% annualized dividend yield can sell the May 2025 covered call at the $130 strike and collect the premium based on the $2.00 bid, which annualizes to an additional 3.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.6% annualized rate in the scenario where the stock is not called away. Any upside above $130 would be lost if the stock rises there and is called away, but CPT shares would have to climb 6.3% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 7.9% return from this trading level, in addition to any dividends collected before the stock was called.