Kimco Realty Corp (NYSE: KIM) shareholders can enhance their income potential by selling December covered calls at a $25 strike price, earning a premium of $0.50. This strategy could yield an additional annualized return of 2.7%, bringing the total potential annualized return to 7.5% if the stock, currently priced at $21.77, is not called away. Should the stock rise to $25, the shareholder would still see an overall return of 16.8%, inclusive of dividends.
As of Monday afternoon trading, the put volume among S&P 500 components reached 1.19 million contracts, while call volume stood at 2.27 million, resulting in a put:call ratio of 0.52. This indicates that investors are favoring call options significantly more than puts, compared to the long-term median ratio of 0.65.
