General Dynamics Corp (NYSE: GD) shareholders can enhance their returns by selling a covered call at the $440 strike for January 2028, reaping a premium of $13.00. This move increases the total annualized yield to 3.6%, combining a 1.8% dividend with the premium, provided the stock doesn’t rise above the strike price. Currently, GD shares are priced at $336.59, requiring a 30.2% increase for the option to be executed, which would net shareholders a 34% return, including dividends.
As of Tuesday afternoon trading, the put volume among S&P 500 components is 697,243 contracts, with call volume at 1.29 million, resulting in a put-to-call ratio of 0.54. This indicates significantly higher call buying relative to put buying when compared to the long-term median ratio of 0.65.
