Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTTrefis TeamThu, July 2, 2026 at 11:04 PM GMT+2 4 min readPhoto by OpenClipart-Vectors on PixabayFor owners of this high-flying industrial stock, here is a way to get paid a meaningful income now, which you keep no matter what, in exchange for capping your gains at an even higher price.Trane Technologies (TT) has been on a tear, climbing +21.9% in three months to trade just shy of its all-time high. The engine here is a gusher of new business, with the company sitting on a record backlog after posting what it called "exceptional" new orders. For shareholders who've enjoyed the ride, it raises a question: what if you could get paid a meaningful income right now, an income you keep no matter what, just for agreeing to sell your shares at an even higher price down the road?11% annualized income on TT shares you already own, with 9.9% of upside room, by selling a covered call.You own (or buy) 100 shares of TT near today's price of $491.16.Sell one call option on TT expiring 1/15/2027, with a strike price of $540, about 9.9% above today.Collect roughly $2,910 in premium up front per contract (each contract covers 100 shares), which you keep no matter what the stock does.That premium is about 11.1% annualized on the $49,116 of stock, income you earn just for holding.If TT finishes above $540, your shares are called away at $540. Counting the premium, your total return works out to about 31% annualized, but you give up any gains above the strike.Either Way, The Premium Is Yours To KeepIf TT finishes below $540 on 1/15/2027, the call expires worthless, and you keep the full $2,910 premium and all your shares. That is about 5.9% over 199 days, income earned just for holding, and you are free to sell another call.If TT finishes above $540, your 100 shares are called away at $540. You still keep the $2,910 premium, and counting it your total gain works out to about 16%, a healthy exit. The cost of the trade is that any gain above $540 is no longer yours. And if the stock instead falls, you keep the premium but still ride the shares down, cushioned only slightly.So the whole trade comes down to one thing: how much of that upside are you really likely to give up, and would you be content to sell at that higher price?How Much Upside Would You Really Be Giving Up?Selling that call means capping your gains, so the real question is how much blue sky you might be giving up. The case for a continued run is simple and powerful: demand is off the charts. Bookings in the Americas Commercial HVAC business just hit an "all-time high," with the key Applied Solutions segment soaring "over 160%." This marks the "third consecutive quarter of applied bookings growth of greater than 100%." That kind of momentum, fueled by the data center buildout, is exactly what can send a stock flying past your exit price, leaving you with a nice, capped return but a serious case of FOMO.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info