Entergy Corp (ETR) shareholders can enhance their income by selling a January 2028 covered call at a $105 strike price, which commands a premium of $7.00. This strategy could yield an annualized return of 6.3%, merging with the stock’s current 2.8% dividend yield. If the stock is called away at the $105 strike, shareholders could achieve a total return of 20.3%, provided the stock rises 12.8% from its current price of $92.92.
As of Tuesday’s mid-afternoon trading, the total put volume for S&P 500 components reached 697,243 contracts, while call volume soared to 1.29 million contracts, resulting in a put-to-call ratio of 0.54. This indicates a notably high interest in call options compared to puts, deviating from the long-term median ratio of 0.65.
ETR’s trailing twelve-month volatility is calculated at 22%, suggesting that while selling the January 2028 covered call could offer good returns, shareholders should remain aware of the risks involved with potential upside loss.
