Shareholders of TE Connectivity plc (Ticker: TEL) can enhance their income by selling an October covered call at the $175 strike price, collecting a premium of $5.20, which could yield an additional 9.5% return annually. This would result in a total potential annual return of 11.2%, assuming the stock is not called away. Currently, TEL shares are trading at $165.44, and a rise to $175 would mean the shareholder achieves an 8.7% return, excluding any dividends collected.
As of mid-afternoon trading on Wednesday, the S&P 500 saw put volume at 568,821 contracts and call volume at 1.12 million, leading to a put:call ratio of 0.51. This figure indicates a heightened preference for call options compared to puts, contrasting with the long-term median ratio of 0.65.
