Shareholders of Nordic American Tankers Ltd (NAT) can enhance their income through a January 2027 covered call at a $7 strike, which offers a premium of 45 cents, equating to an annualized return of 8.8%. This combined with the stock’s current 11.5% annualized dividend yield results in a total annualized return of 20.3% if the stock is not called away. Should the stock exceed $7, shareholders stand to earn a total return of 27.4%, assuming they also collect dividends before the stock is called.
As of mid-afternoon trading on Monday, the S&P 500 experienced a put volume of 1.10 million contracts and call volume of 2.40 million, resulting in a put-to-call ratio of 0.46. This indicates substantially high call volume, showing a preference for calls among options traders compared to the long-term median put-to-call ratio of 0.65.
