Shareholders of Everest Group Ltd (Symbol: EG) can enhance their income beyond the 2.3% annualized dividend yield by selling the June 2026 covered call at the $360 strike price. The premium of $23.50 per contract annualizes to an additional 7.4% return, totaling a potential 9.7% annualized rate if the stock is not called away. If the stock rises above $360, any upside beyond that point will be lost, but shareholders would still earn a 12.1% return from this trading level if the stock is called.
As of now, Everest Group Ltd’s stock is trading at $341.56, with a trailing twelve-month volatility of 26%. In broader market trading, there were 722,525 put contracts and 1.33 million call contracts among S&P 500 components on Monday, translating to a put-call ratio of 0.54, indicating a preference for call options compared to puts.
