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Shareholders of Equity Residential (EQR) can increase their income by selling the April 2026 covered call at the $60 strike for a premium of $2.50, resulting in an additional 10.4% annualized return. This would bring the total annualized yield to 15.1%, assuming the stock remains uncalled. EQR’s shares need to increase by 2.1% from the current price of $58.77 for the stock to be called away, which would still yield a 6.3% return alongside any dividends collected.
As of Wednesday afternoon, the put volume among S&P 500 components was 684,819 contracts with call volume at 1.41 million, reflecting a put:call ratio of 0.48. This indicates a significant preference for calls, as the long-term median put:call ratio is 0.65.
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