Shareholders of Cactus Inc (NYSE: WHD) can enhance their income by selling a covered call at the $55 strike for the May expiration. The current bid of $2.55 per share offers an annualized return of 14.4% on the current stock price of $51.34, resulting in a total potential yield of 15.5% if the stock is not called away. If the stock price rises to $55, shareholders would realize a 12.4% total return, including dividends collected prior to the call.
On Friday, during mid-afternoon trading, the overall put volume among S&P 500 components reached 938,960 contracts, with call volume at 1.75 million. This leads to a put-call ratio of 0.54, significantly below the long-term median ratio of 0.65, indicating a preference for call options in today’s trading activity.
