Strategy To YieldBoost American Tower To 8.6% Using Options

Shareholders of American Tower Corp (AMT) looking to boost their income beyond the stock's 3.3% annualized dividend yield can sell the January 2026 covered call at the $220 strike and collect the premium based on the $16.50 bid, which annualizes to an additional 5.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.6% annualized rate in the scenario where the stock is not called away. Any upside above $220 would be lost if the stock rises there and is called away, but AMT shares would have to advance 13.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 21.7% return from this trading level, in addition to any dividends collected before the stock was called.