Murphy USA Inc (MUSA) shareholders can enhance their income by selling a December covered call option at a $530 strike price, currently offering a premium of $25.00. This trade could yield an additional 6.5% return, bringing the total annualized yield to 7.1% assuming the stock is not called away. However, if the stock rises above $530, shareholders would miss out on any upside beyond that level. The stock would need to appreciate by 24.5% for this scenario to occur.
As of now, Murphy USA’s shares are priced at $430.56, with a historical volatility of 34% based on the last 251 trading days. In broader market activity, the S&P 500 saw put volume of 1.53 million contracts against call volume of 2.57 million, resulting in a put-call ratio of 0.59, indicating strong buyer preference for calls compared to puts.
