Get Paid 16% A Year To Hold INTU Stock You Already Own

Here is a way to collect an attractive income on INTU now, which you keep whatever the stock does, in exchange for agreeing to sell your shares if the stock climbs above a higher price.

Intuit (INTU) has had a rough year, with the stock currently trading about 48% below its 52-week high and lagging the broader market significantly. For shareholders sitting on a position that’s gone sideways to down, the question becomes what to do now. One option is to turn those shares into an income-producing asset today, a way to get paid for your patience.

16% annualized income on INTU shares you already own, with 19% of upside room, by selling a covered call.

• You own (or buy) 100 shares of INTU near today’s price of $361.87.
• Sell one call option on INTU expiring 9/17/2027, with a strike price of $430, about 19% above today.
• Collect roughly $6,100 in premium up front per contract (each contract covers 100 shares), which you keep no matter what the stock does.
• That premium is about 15.6% annualized on the $36,187 of stock, income you earn just for holding.
• If INTU finishes above $430, your shares are called away at $430. Counting the premium, your total return works out to about 33% annualized, but you give up any gains above the strike.

Either Way, The Premium Is Yours To Keep

If INTU finishes below $430 on 9/17/2027, the call expires worthless, and you keep the full $6,100 premium and all your shares. That is about 17% over 393 days, income earned just for holding, and you are free to sell another call.

If INTU finishes above $430, your 100 shares are called away at $430. You still keep the $6,100 premium, and counting it your total gain works out to about 36% over the holding period (about 33% annualized), a healthy exit. The cost of the trade is that any gain above $430 is no longer yours. And if the stock instead falls, you keep the premium but still ride the shares down: the premium offsets the first 17% of the decline over the holding period and nothing beyond it.

Before You Sell That Call, Know What You Are Capping

The real cost of this trade is giving up on a massive rally if one materializes. So, how much blue sky are you really selling? The bull case for Intuit is that its new growth drivers are firing on all cylinders. Management points to its key growth areas in assisted tax, money, and mid-market, which are “all growing north of 30%.” The TurboTax Live business, in particular, is expected to grow revenue by 36% this year, a sign that the company’s pivot to higher-value services is working and could reignite the stock.

On the other hand, there are reasons to believe the upside is more contained. The company admits it’s “constructively dissatisfied” with its performance in the do-it-yourself tax segment, where it “lost on price” to competitors. This pressure on its traditional core, combined with a slight revenue decline at its Mailchimp acquisition, could act as an anchor on the share price. We have explored other ways to generate income from this stock before, and for investors who see these challenges limiting a major breakout, getting paid to cap the upside at a higher price can look like a smart trade-off. The key thing to watch will be whether the company’s plan to “evolve our business model” in that price-sensitive DIY segment gains traction.

What Income Could Your Own Stocks Pay?

You may not own INTU, but you almost certainly own something that could be paying you. Our Covered Call Finder lets you type in a stock, or a few, and instantly see the income a covered call could generate on each, then dial the strike up or down with a slider to balance more income against more upside. It is the quickest way to see what the names in your own portfolio could pay.

One step out from a single name: a software ETF like IGV owns the whole software group at once, so no single company can sink you. It still rises and falls with that one theme, which is exactly the gap the portfolio below closes.

Where This Income Trade Fits A Bigger Plan

A covered call turns one stock you own into income, but the premium and the downside still come from a single company in a single corner of the market. Durable results come from owning quality across sectors, so that no one name, and no one theme, decides how your year goes.

That is what the Trefis High Quality (HQ) Portfolio is built for: about 30 high-quality businesses spread across sectors, each chosen on the full weight of its fundamentals rather than a single setup, then sized and rebalanced with discipline. It has a track record of outpacing a benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. Write calls for income on the names you like, on top of a diversified core that does not lean on any one company or theme.