Shareholders of Xylem Inc (NYSE: XYL) can enhance their income by selling April 2026 covered calls at a $155 strike price, collecting a premium of $5.10, which yields an additional 5.5% annualized return. This would bring the total annualized yield to 6.6% if the stock is not called away. Xylem shares would need to rise by 8.1% to reach the $155 strike, resulting in a potential total return of 11.6% if the stock is called, alongside any dividends received prior.
The current stock price stands at $143.70, with a trailing twelve-month volatility of 26%. In recent trading activity, the S&P 500 recorded a put volume of 1.09 million contracts and a call volume of 2.02 million, creating a put:call ratio of 0.54, indicating higher call volume compared to puts.
