CDW Corp (Symbol: CDW) shareholders are considering selling December covered calls at the $180 strike price to increase their income. With a bid premium of $10.60, this strategy could yield an additional 12.5% annualized return, bringing the total potential yield to 13.9% if the stock is not called away. Currently, CDW shares are priced at $173.02, requiring a 3.9% increase for the stock to be called away, which would result in a 10% return plus any dividends collected before the call.
As of Monday afternoon, the put volume among S&P 500 components reached 810,397 contracts, while call volume was at 1.55 million, resulting in a put-to-call ratio of 0.52, indicating a preference for calls. This is significantly lower than the long-term median of 0.65, reflecting strong bullish sentiment among traders.
