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Shareholders of Stepan Co. (SCL) can enhance their income by selling a June 2026 covered call at a $50 strike price, with a premium bid of $3.00, which translates to an additional annualized return of 11.7%. This would yield a total return of 15.2% if the stock remains below the strike price, assuming the current stock price is $45.87, representing a 9.2% upside potential before the stock could be called.
The trailing twelve-month volatility for Stepan Co. is calculated at 34%. On Wednesday, the put volume among S&P 500 components was 1.01 million contracts and call volume was 1.80 million contracts, resulting in a put-call ratio of 0.56, indicating higher call volume relative to puts compared to the long-term median ratio of 0.65.
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