Shareholders of Golar LNG Ltd (GLNG) can enhance their income by selling a covered call option with a $50 strike price expiring in December 2027. This strategy could yield an additional 4.8%, combined with the current 2.7% annualized dividend yield, totaling a potential annualized return of 7.5% if the stock is not called away. The stock would need to rise by 34.8% for this option to be exercised, providing a 44.3% return if it is called.
As of mid-afternoon trading on Tuesday, put volume among S&P 500 components was 682,368 contracts, while call volume reached 1.19 million, resulting in a put:call ratio of 0.57. This indicates a preference for call options over puts, which is above the long-term median ratio of 0.65.
