Shareholders of A10 Networks Inc (Ticker: ATEN) can enhance their income through a December covered call at the $20 strike, earning a premium of $1.80, which corresponds to an annualized return of 19.7%. This brings the total annualized rate of return to 21%, assuming the stock is not called away. Currently, ATEN shares are priced at $18.97, needing a 6.1% increase to exceed the $20 threshold where shareholders would lose upside potential.
The trading history indicates a trailing twelve-month volatility of 34%, providing investors a framework to assess potential returns against associated risks. In Wednesday’s trading session, put volume among S&P 500 components reached 1.14 million contracts, compared to 2.57 million calls, marking a put-to-call ratio of 0.45, signaling a preference for call options.
