Covered calls on REITs
Selling covered calls on REITs (O, VICI, NLY, AGNC, STAG, MPW). The dividend-dominated premium-selling playbook with REIT-specific assignment-risk considerations.
REITs are dividend monsters — 4-12% yields are common. They're also liquid enough for options selling, with IV typically in the 20-35% range. The combination of high dividend + meaningful IV makes REIT covered calls a unique income profile: most of your yield comes from dividends, with premium as a supplement. The catch: dividend-dominated names have above-average early-assignment risk.
Tickers in this sector
The dividend trap
REIT covered calls have to navigate ex-dividend assignment risk MORE than any other sector. If a REIT pays a $0.30 monthly dividend and your short call has $0.10 of time value remaining, the call holder WILL exercise to capture the dividend. Solution: time call expirations to BEFORE ex-dividend dates, or sell calls with strikes well above current price.
Monthly vs quarterly dividends
Realty Income (O) and STAG pay monthly dividends. AGNC pays monthly. Most other REITs pay quarterly. Monthly-payer REITs require more attention to call expiration timing — there's an ex-div date EVERY MONTH.
Mortgage REITs vs equity REITs
AGNC and NLY are mortgage REITs (mREITs) — they own mortgage securities, are leveraged, and pay high yields (10-15%) that are sensitive to interest rate cycles. They CAN cut dividends and have done so historically. Equity REITs (O, SPG, PLD) own physical properties and have more stable dividends.
IV characteristics
REIT IV is moderate — typically 20-30%. Premium on covered calls is decent but not spectacular. The total yield (dividend + premium) is what makes REIT CCs attractive, not the premium alone. A REIT CC with 12% dividend + 6% annualized premium = 18% total — competitive with high-IV tech names.
Recommended REIT CC candidates
Conservative: O (Realty Income — 5% dividend, blue chip), VICI (gaming REIT — 5%), PLD (logistics — 3%). Aggressive: AGNC, NLY (10-15% dividend mREITs — higher capital risk). Specialty: SPG (malls), EXR (storage), MPW (medical properties — controversy and yield).
Live yields for these tickers
Click any ticker above to see its live option chain, or use the calculators directly:
- Live opportunities — top yields across the full universe
- Covered call calculator
- Cash-secured put calculator
- Wheel tracker
Frequently asked questions
Why reit for options income?
See the article body — the short answer is the combination of liquidity, IV regime, and dividend profile that makes this sector workable for income-sellers.
Which of these tickers is the best?
There's no single best; it depends on your goals (income vs growth), account size, and risk tolerance. Click into any ticker symbol to see its live yields and chain.
Where do I get live data on these tickers?
Click any ticker symbol to open its dashboard. The live opportunities page also ranks every ticker on the site by annualized yield in real time.