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Shareholders of Wesco International, Inc. (WCC) can sell a September 2026 covered call at the $300 strike, earning a premium of $27.00 per share. This translates to an annualized return of 12.6%, boosting their overall yield to 13.2% if the stock is not called away. If WCC shares reach the $300 mark, shareholders would earn a total return of 19.8%, including any dividends collected prior to the call.
As of mid-afternoon trading on Friday, September 29, 2023, Wesco’s stock was priced at $273.63, reflecting a 9.9% increase needed to trigger the call. Additionally, the company’s trailing twelve-month volatility stands at 42%. On that trading day, S&P 500 options saw a put volume of 1.08 million contracts and call volume of 2.29 million contracts, resulting in a put-to-call ratio of 0.47, indicating strong demand for calls.
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