Boosting FTAI's Yield with Options

FTAI Aviation Ltd shareholders can boost their income by selling the March 2026 covered call at the $200 strike and collect a premium based on the $11.90 bid, annualizing to a 13.8% rate of return. This would result in a total annualized rate of 14.5% in the scenario where the stock is not called away. However, any upside above $200 would be lost if the stock rises and is called away.

FTAI Aviation Ltd. (NASDAQ: FTAI) shareholders have an opportunity to boost their income by implementing a covered call strategy. The March 2026 covered call at the $200 strike, with an $11.90 bid, offers an annualized return rate of 13.8%. This strategy involves selling call options on shares of FTAI, generating income through the premium received, while maintaining ownership of the underlying stock.

The covered call strategy can result in a total annualized rate of 14.5% if the stock does not rise above the strike price of $200. However, it is essential to note that any upside above $200 would be lost if the stock is called away, limiting potential gains. This strategy is particularly beneficial for investors looking to generate additional income while potentially protecting against market downturns.

FTAI Aviation has shown strong financial performance in recent quarters. The company's second-quarter 2025 adjusted EBITDA surged 63% to $347.8M, driven by aerospace manufacturing growth and an asset-light model. The Strategic Capital Initiative (SCI) expands lease revenue via off-balance-sheet aircraft investments, avoiding liquidity strain. These strategic shifts have positioned FTAI for sustained growth FTAI Aviation’s Strategic Position in the Post-Pandemic Aviation Recovery^[2].

Investors should consider the risks associated with this strategy. While the covered call generates income, it also limits the upside potential of the stock. Additionally, the stock price must not exceed the strike price for the strategy to be fully effective. For shareholders looking to optimize income, the covered call strategy can be a valuable tool, particularly in the context of FTAI's strong financial performance and attractive valuation multiples FTAI Aviation’s Strategic Position in the Post-Pandemic Aviation Recovery^[2].

References:
FTAI Aviation Ltd | Option Profit & Loss Chart | Short Call^[1] https://optioncharts.io/options/FTAI/option-profit-loss-chart/strategy/short-call?legs=FTAI250912C00140000,sell,1
FTAI Aviation’s Strategic Position in the Post-Pandemic Aviation Recovery^[2] https://www.ainvest.com/news/ftai-aviation-strategic-position-post-pandemic-aviation-recovery-2509/
Pingora Partners LLC Raises Holdings in FTAI Aviation Ltd. $FTAI^[3] https://www.marketbeat.com/instant-alerts/filing-pingora-partners-llc-raises-holdings-in-ftai-aviation-ltd-ftai-2025-09-06/