Utz Brands Inc (UTZ) shareholders can enhance their income by selling October covered calls at a $15 strike price, collecting a premium of $0.60, which annualizes to an additional 11.9% return on top of the current 1.8% dividend yield, totaling a potential 13.7% annualized return if the stock is not called away. Should the stock price rise above $15, shareholders would realize a 15.3% return, given the current price of $13.51, after a 10.9% increase.
As of mid-afternoon trading on Tuesday, the put volume for S&P 500 components reached 692,131 contracts, compared to call volume of 1.39 million, resulting in a put:call ratio of 0.50, indicating higher call trading preference among options investors relative to puts. This call volume is significantly higher than the long-term median put:call ratio of 0.65.
