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Shareholders of Paycom Software Inc (Symbol: PAYC) can enhance their income by selling a covered call at the $300 strike for December 2027. This option offers a premium of $26.50, which translates to an annualized return of 5.4% on top of the current dividend yield of 0.7%, resulting in a total annualized return of 6.1% if the stock is not called away. PAYC would need to rise by 36.6% to $300 for the shares to be called, yielding a total return of 48.7% including dividends.
The trailing twelve-month volatility for Paycom is calculated at 39%, based on the last 249 trading day closing values, with the current stock price at $220.18. In today’s trading, the put volume among S&P 500 components reached 1.03 million contracts while call volume was at 2.17 million, resulting in a put/call ratio of 0.48.
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