YieldBoost Invitation Homes From 3.1% To 10.7% Using Options

Shareholders of Invitation Homes Inc (INVH) looking to boost their income beyond the stock's 3.1% annualized dividend yield can sell the January 2025 covered call at the $37.50 strike and collect the premium based on the $1.10 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 10.7% annualized rate in the scenario where the stock is not called away. Any upside above $37.50 would be lost if the stock rises there and is called away, but INVH shares would have to climb 4.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 7.6% return from this trading level, in addition to any dividends collected before the stock was called.