Estee Lauder Cos., Inc. (Symbol: EL) shareholders can enhance their income by selling a January 2027 covered call at the $140 strike price. The premium bid of $5.35 provides an annualized return of 4%, increasing the total yield to 5.6% assuming the stock isn’t called away. The stock would need to rise 56.3% for the shares to be called, resulting in a total shareholder return of 62.2%, including any dividends received.
As of mid-afternoon trading on Wednesday, Estee Lauder shares were priced at $89.67, with a calculated trailing twelve-month volatility of 54%. In S&P 500 options trading, put volume stood at 556,880 contracts, while call volume reached 1.21 million, yielding a put:call ratio of 0.46, indicating a preference for calls compared to puts.
