What is the expected annual return from this strategy on RTX stock?

The expected annual return is up to 8.1% based on the option premium and current stock price.

What are the main risks of a covered call strategy?

The main risk is that you may have to sell your shares at a price below the market if the stock rises significantly, capping your gains.

Is the 8.1% yield guaranteed?

No, the yield is not guaranteed; it depends on the option premium, which changes with market volatility and stock price.

Is this strategy suitable for all investors?

No, it is suitable for investors who expect the stock to remain stable or rise moderately and want extra income, but not for those expecting a large rally.

Earn 8.1% Annually on Your RTX Stock with Covered Calls

RTX shareholders can earn up to 8.1% annually by selling covered calls on their existing shares, keeping the premium regardless of stock price movements.

July 2, 2026

2 min read

Source: Trefis

Key Numbers

yield

8.1%

According to a report by Trefis, RTX (NYSE: RTX) shareholders can generate an annual yield of up to 8.1% by selling covered calls on their existing shares. This strategy provides immediate income (option premium) in exchange for agreeing to sell shares at a predetermined strike price above the current market price.

Strategy Details

Mechanism: Sell a call option on RTX shares already owned.
Yield: 8.1% annually (based on option premium and current stock price).
Condition: If the stock price exceeds the strike price at expiration, the investor must sell shares at that price.
Benefit: The investor keeps the option premium regardless of stock movement.

Context

This strategy suits investors who expect RTX to trade in a range or rise moderately, seeking additional income. However, it caps upside potential if the stock surges significantly.

What It Means for Investors

The strategy offers decent income in a high-interest-rate environment but carries risks: investors may miss out on larger gains if the stock rises above the strike price. The 8.1% yield is not guaranteed and may change with market volatility.

Frequently Asked Questions

It involves selling a call option on shares you already own, giving the buyer the right to buy your shares at a set price, while you receive a premium (immediate income).

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.