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Shareholders of Coterra Energy Inc (CTRA) can enhance their income by selling a January 2027 covered call at a $35 strike for a premium of 65 cents. This strategy can yield a total annualized return of 5.5%, assuming the stock isn’t called away, which would require a 34.1% price increase from the current level of $26.22.
The stock offers a 3.4% annualized dividend yield, and its historical volatility stands at 31%. As of Monday afternoon trading, S&P 500 put volume reached 886,867 contracts, while call volume hit 1.84 million contracts, resulting in a put:call ratio of 0.48, indicating a preference for calls among buyers compared to the long-term median of 0.65.
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