Shareholders of Academy Sports & Outdoors Inc (ASO) can enhance their income by selling July covered calls at the $70 strike price, currently offering a premium of $2.55. This trade could yield an additional annualized return of 11.2%, bringing the total potential annual return to 12.1% if the stock price remains below $70. The stock, trading at $57.87, would need to increase by 21% for the calls to be exercised, resulting in a total return of 25.4%, including dividends.
The stock has a trailing twelve-month volatility of 53%, calculated from the last 250 trading days, which can inform decisions around risk and potential returns. Currently, ASO offers a 0.9% annualized dividend yield, although dividend amounts may vary based on the company’s profitability.
