Covered Calls on American Tower (AMT)

by | Mar 9, 2021 | Covered Calls

AMT Logo

Today, I purchased shares of American Tower Corp (REIT) and immediately sold monthly April 16, 195.00 calls. Given that my Market Meter outlook for risky assets is “Neutral”, I decided to sell slightly ITM calls.

Market Meter for Risky Assets

Assuming that my shares aren’t called away before the option expiry, I will receive the quarterly dividend of $1.24/share in addition to the $12.10 per call sold. As noted in the table below, the annualized return on this trade will be 30.1% if the shares close at or above $195.00 on the call expiry date of April 16.

Covered Call Potential Trade Return Table

As with the other stocks I selected recently to sell covered calls on, the share price of American Tower has fallen and appears to have found support. That price decline coupled with a strong analyst rating gives me a level of comfort in this trade.

AMT Chart

All the best in trading and in life.