Shareholders of FMC Corp. (Symbol: FMC) can enhance their income by selling January 2028 covered calls at a $20 strike price for a premium of $1.80, which translates to an annualized return of 10%. This additional income combined with the stock’s 2.7% annualized dividend yield results in a potential total return of 12.7%, assuming the stock is not called away. For the stock to be called, it must increase by 67.1% from its current price of $11.94, yielding an 82.1% return if the stock is called.
As of Wednesday afternoon trading, total put options volume among S&P 500 components was 2.38 million contracts and call volume reached 4.74 million contracts, yielding a put:call ratio of 0.50, indicating a strong preference for call options compared to puts, which is significantly below the long-term median ratio of 0.65.
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