Shareholders of Steven Madden Ltd. (SHOO) can enhance their income by selling a June 2026 covered call at the $50 strike price, collecting a premium of $2.75. This trade could yield an additional 13.2% annualized return on top of the current 2% dividend yield, bringing the total potential annualized return to 15.1%. A price increase beyond $50 would limit additional earnings, but shareholders could still realize a 23% return if the stock rises 16.6% and gets called away.
As of Monday, the stock is trading at $42.84, with a trailing twelve-month volatility of 54%. In broader market activity, S&P 500 put volume reached 958,732 contracts compared to 2.08 million calls, indicating a put-call ratio of 0.46, reflecting heightened bullish sentiment among options traders.
