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Shareholders of Zimmer Biomet Holdings Inc (ZBH) can enhance their income by selling the January 2027 covered call at the $110 strike, collecting a premium of $9.00, which translates to an additional 6.8% return, bringing the total potential annualized return to 7.7% if the stock isn’t called away. ZBH shares must rise by 9.8% for the stock to be called, at which point investors could see a total return of 18.8%, including dividends, if the stock reaches this level before being called.
The trailing twelve-month volatility for Zimmer Biomet is calculated at 27%, based on the last 250 trading days, highlighting the risk regarding the upside potential beyond the $110 strike price. Additionally, on a recent Tuesday mid-afternoon session, put volume among S&P 500 components was recorded at 672,867 contracts, with call volume at 1.56 million, yielding a put:call ratio of 0.43, indicating higher preference for calls in trading activity.
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