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Newmark Group Inc (NMRK) shareholders can enhance their income by selling a covered call at the $20 strike price, which has a bid premium of $1.30. This strategy could yield an additional 13.4% annualized return, bringing the total potential yield to 14.1% if the stock is not called away. Currently, NMRK shares are priced at $18.13, indicating a need for a 10.9% increase to reach the $20 strike, which would result in an 18.1% gain if the option is executed.
The company’s historical volatility is calculated at 39% based on the last 250 trading days. As of Friday afternoon trading, the S&P 500 showed a put volume of 1.47 million contracts and call volume of 2.85 million contracts, resulting in a put:call ratio of 0.51, indicating higher preference for call options.
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