Shareholders of Martin Marietta Materials, Inc. (MLM) can boost their income by selling a December covered call at the $570 strike, collecting a premium at a $29.50 bid, which annualizes to an additional 10.8% return. The current stock price is $543.98, indicating a 4.9% increase would trigger the call. If this occurs, shareholders would achieve a total return of 10.3%, in addition to any dividends accrued.
The company’s annualized dividend yield currently stands at 0.6%. Martin Marietta’s trailing twelve-month volatility is calculated at 25%, helping investors assess the risks versus rewards of this option strategy. On Wednesday, S&P 500 trading showed a put volume of 568,821 contracts, with call volume at 1.12 million, resulting in a put:call ratio of 0.51, indicating a preference for calls among traders.
