Shareholders of BlackRock Inc (Ticker: BLK) can enhance their income by selling January 2028 covered calls at a $1,340 strike price, allowing them to potentially collect an annualized return of 5.5% when combined with the company’s current 1.9% dividend yield. The option has a bid of $81.00, offering a 3.6% additional return if the stock is not called away. BlackRock shares would need to rise 23% for the stock to be called, resulting in a total return of 30.4%, including dividends.
As of Monday afternoon trading, the put volume among S&P 500 components reached 958,732 contracts, while call volume stood at 2.08 million, creating a put:call ratio of 0.46. This indicates a strong preference for call options among investors, significantly deviating from the long-term median ratio of 0.65.
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