Boost Your Income: Exploring Covered Calls with H&E Equipment Services
Maximizing Returns with HEES Stock Options
Shareholders of H&E Equipment Services Inc (Symbol: HEES) seeking to enhance their income beyond the stock’s current 2.2% annual dividend yield have an option: consider selling the August 2025 covered call at a $57.50 strike price. By doing so, investors can collect a premium of $3.40, which translates to an additional 10.6% return on the current stock price. When combined, this could lead to a total annualized return of 12.8%, provided the stock is not called away. However, if the stock price exceeds $57.50 and is called away, investors will miss out on any additional gains beyond that point. Notably, HEES shares would need to rise 15.2% from current levels for the stock to be called away, resulting in a total return of 22%, including any earned dividends.
Dividend amounts can fluctuate based on a company’s profitability. To evaluate whether H&E Equipment Services might continue its dividend at the current yield, it’s helpful to consult the dividend history chart for HEES displayed below.
A chart highlighting HEES’s trading history over the past twelve months is shown below, with the $57.50 strike price marked in red:
This chart, alongside the stock’s historical volatility, can serve as a valuable tool for assessing whether selling the August 2025 covered call at the $57.50 strike offers a favorable reward versus the risk of losing potential upside. The trailing twelve-month volatility for H&E Equipment Services has been calculated at 43%, considering the last 251 trading day closing values, alongside today’s price of $49.69. For additional call option strategies across various expiration dates, visit the HEES Stock Options page at StockOptionsChannel.com.
During mid-afternoon trading on Tuesday, the S&P 500 saw a put volume of 903,272 contracts and a call volume of 1.98 million, resulting in a put:call ratio of 0.46 for the day. This ratio indicates significantly higher call volume compared to puts, reflecting that buyers are favoring calls in options trading today. Discover which 15 call and put options are currently trending among traders.
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Also see:
- Institutional Holders of YRIV
- Institutional Holders of EHGT
- PRGX Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
