How To YieldBoost CARR From 1.3% To 7% Using Options

Shareholders of Carrier Global Corp (CARR) looking to boost their income beyond the stock's 1.3% annualized dividend yield can sell the January 2027 covered call at the $82.50 strike and collect the premium based on the $8.20 bid, which annualizes to an additional 5.7% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7% annualized rate in the scenario where the stock is not called away. Any upside above $82.50 would be lost if the stock rises there and is called away, but CARR shares would have to advance 18.5% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 30.3% return from this trading level, in addition to any dividends collected before the stock was called.