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Shareholders of Sensata Technologies Holding PLC (NYSE: ST) can enhance their income by selling March 2026 covered calls at the $35 strike price, fetching a premium of $1.75, which equates to an annualized return of 12.7%. This would lead to a total annualized return of 14.2% if the stock is not called away. Currently, shares are trading at $30.58, requiring a 13.8% increase for the stock to be called, resulting in a potential 19.4% return in that scenario, alongside dividends received beforehand.
As of Tuesday mid-afternoon trading, the put volume among S&P 500 components stood at 678,921 contracts while call volume reached 2.05 million, yielding a put-to-call ratio of 0.33, significantly below the long-term median of 0.65. This indicates a strong preference for call options among traders today.
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