Wolverine World Wide, Inc. (Symbol: WWW) offers shareholders an opportunity to enhance their income by selling a December 2026 covered call at the $25 strike price. The premium bid of $2.75 annualizes to a potential 9.9% return, resulting in a total annualized yield of 11.9% if the stock is not called. If the stock price rises above $25, shareholders risk losing that upside, which would require a 29.7% increase in the stock price from its current level of $19.32 for the call to be exercised, resulting in a total return of 44%, including dividends.
As of mid-afternoon trading on Tuesday, Wolverine World Wide has a trailing twelve-month volatility of 68%. In related market activity, S&P 500 put volume reached 504,639 contracts, while call volume was at 1.03 million, yielding a put:call ratio of 0.49, indicating a preference for call options among traders.
