Shareholders of MKS Inc. (MKSI) can enhance their income by selling a covered call for January 2026 at the $120 strike price, collecting a premium of $5.90, which equates to a potential annualized return of 12.3% when added to its current 0.9% annualized dividend yield. Should the stock rise to $120, shareholders could achieve a total return of 23.3% but would lose any upside beyond that price.
The stock’s current price is $102.34, and it has a trailing twelve-month volatility of 62%. On the trading front, in mid-afternoon trading on Monday, the put volume among S&P 500 components was 740,222 contracts, while call volume reached 1.52 million, resulting in a put-call ratio of 0.49, indicating a strong preference for calls among buyers.