Shareholders of Toll Brothers Inc. (TOL) can enhance their income by selling a January 2028 covered call at a $200 strike price, with a premium bid of $11.90, translating to a potential additional return of 4.2% annually. If Toll Brothers’ stock, currently priced at $145.25, reaches the $200 mark, shareholders could realize a total return of 46.6%, including dividends, assuming the stock is called away.
As of mid-afternoon trading on Thursday, S&P 500 options showed a put volume of 1.60 million contracts against a call volume of 2.74 million contracts, yielding a put:call ratio of 0.59, indicating a preference for call options. The long-term median put:call ratio stands at 0.65, suggesting heightened call buying activity.
