Shareholders of Smurfit Westrock plc (Symbol: SW) can enhance their income by selling a covered call for January 2027 at a $50 strike price, collecting a premium of $3.50. This strategy could yield an additional 5.4%, bringing the total annualized return to 9.5% if the stock is not called away. However, if SW shares increase by 19.9% to reach the $50 mark, shareholders would realize a total return of 28.3%, including dividends.
The stock is currently priced at $41.94, and its historical volatility is calculated at 38%. On Monday, S&P 500 options trading showed put volume at 810,397 contracts and call volume at 1.55 million, resulting in a put:call ratio of 0.52, highlighting strong call buying interest relative to puts.
