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NXP Semiconductors NV (NXPI) shareholders can enhance their income by selling a January 2028 covered call at the $340 strike, which yields a premium of $19.40. This strategy could provide an additional annual return of 3.8%, resulting in a total potential yield of 5.6% if the stock price remains below $340. Currently, NXPI shares are priced at $225.90.
If the stock rises above $340, shareholders would see a capital gain of 59.4%, taking into account dividends earned up to that point. NXP’s twelve-month volatility is calculated at 44%, which investors may consider when evaluating this trading strategy.
As of Tuesday afternoon, the put volume among S&P 500 components was 678,921 contracts, while call volume reached 2.05 million, resulting in a put:call ratio of 0.33, indicating a strong preference for calls relative to puts.
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