Covered Call Yield

Omega Healthcare (OHI) offers a dividend yield of 5.58% with a low beta of 0.54, appealing to income‑focused investors. A covered‑call strategy could potentially double that income, boosting the total yield to 12.88% by selling call options against OHI shares. If the stock remains below the strike price, the strategy could deliver a 6.0% return, translating to an annualized rate of 23.0%. However, the approach carries risk: the share price could rise above the strike level, resulting in the shares being called away at $50, and the stock’s value may fluctuate, impacting the overall return.