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CenterPoint Energy, Inc. (CNP) shareholders can enhance their income by selling May 2026 covered calls at a $41 strike, collecting a premium of $1.95, which corresponds to an annualized return of 9.8%. This, combined with the current 2.2% dividend yield, totals a potential 12% annualized return if the stock is not called away. The stock would need to rise by 3.3% to $41 for the option to be exercised, yielding an overall return of 8.2% if called.
As of mid-afternoon trading on Wednesday, CNP is trading at $39.62. The historical volatility over the last twelve months is calculated at 17%. Additionally, among S&P 500 options, put volume was at 787,816 contracts and call volume at 1.58 million, resulting in a put:call ratio of 0.50, indicating a preference for calls in options trading.
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