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Strategy To YieldBoost WELL From 2.1% To 6.3% Using Options

Shareholders of Welltower Inc (WELL) looking to boost their income beyond the stock's 2.1% annualized dividend yield can sell the January 2027 covered call at the $150 strike and collect the premium based on the $11.30 bid, which annualizes to an additional 4.2% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 6.3% annualized rate in the scenario where the stock is not called away. Any upside above $150 would be lost if the stock rises there and is called away, but WELL shares would have to climb 15.9% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 24.7% return from this trading level, in addition to any dividends collected before the stock was called.
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