Williams Sonoma Inc (WSM) shareholders can enhance their income by selling a January 2027 covered call at the $280 strike price. This transaction could yield a premium of $14.30, translating to an annualized return of 5% alongside its current 1.3% annualized dividend yield, resulting in a total potential return of 6.4% if the stock is not called away. However, if the stock climbs 43.2% to be called away, shareholders could earn a total return of 50.5%, including dividends.
As of Monday afternoon trading, the stock price for Williams Sonoma stands at $197.84, with a trailing twelve-month volatility of 50%. Additionally, S&P 500 options activity showed a call volume of 1.55 million against put volume of 725,081 contracts, yielding a put:call ratio of 0.47, indicating a strong preference for call options among traders.
