YieldBoost Viatris From 4.5% To 11.1% Using Options

Shareholders of Viatris Inc (VTRS) looking to boost their income beyond the stock's 4.5% annualized dividend yield can sell the January 2026 covered call at the $12 strike and collect the premium based on the 65 cents bid, which annualizes to an additional 6.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 11.1% annualized rate in the scenario where the stock is not called away. Any upside above $12 would be lost if the stock rises there and is called away, but VTRS shares would have to climb 12.6% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 18.7% return from this trading level, in addition to any dividends collected before the stock was called.