Shareholders of Xerox Holdings Corp (XRX) can enhance their income by selling covered calls for December 2027 at a $7 strike price, earning a premium of 50 cents, which corresponds to an annualized return of 12.2%. This, combined with the company’s current 3.9% annual dividend yield, brings the total potential return to 16.1% annually, assuming the shares aren’t called away. For XRX shares to be called, they must increase by 173.4% from the current price of $2.59.
As of mid-afternoon trading on Wednesday, the S&P 500’s put volume reached 2.84 million contracts, while calls totaled 6.70 million, indicating a put-call ratio of 0.42. This figure highlights a significant preference for calls among traders, contrasting with the long-term median ratio of 0.65.
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