Shareholders of Johnson Controls International plc (JCI) can enhance their income through a covered call strategy by selling a June 2026 call option at a $115 strike price for an $8.30 premium. This could yield an additional 8.9% annualized return on top of the current 1.4% dividend yield, resulting in a total potential return of 10.3% if the stock is not called away. JCI’s stock must rise 7.7% to reach the $115 level for shares to be called, leading to a 15.5% return including dividends if called.
As of now, JCI’s stock price stands at $106.58, and the company’s trailing twelve-month volatility is calculated at 31%. In mid-afternoon trading on Monday, the S&P 500 put volume was 725,081 contracts with a call volume of 1.55 million contracts, resulting in a put-to-call ratio of 0.47. This indicates a strong preference for call options among buyers compared to the long-term median ratio of 0.65.
