International Game Technology PLC (NYSE: IGT) offers shareholders a way to increase their income by selling covered calls on their stock. Shareholders can sell the January 2027 covered call at the $20 strike price, collecting a premium with a bid of $1.20, effectively adding an annualized return of 4.9% to the existing 5.1% dividend yield, leading to a potential total annualized return of 10%, assuming the stock is not called away. Currently, IGT’s stock price stands at $15.68, meaning the stock would need to rise by 27.2% for the shares to be called.
Additionally, the trailing twelve-month volatility for IGT is calculated at 35%. In market trading on Friday, put volume was 1.18 million contracts and call volume was 2.17 million, resulting in a put-call ratio of 0.54, indicating higher call activity compared to puts, and a preference for call options among traders.
