Shareholders of Ryerson Holding Corp (Ticker: RYZ) can enhance their returns by selling a September covered call at the $30 strike price, collecting a premium of $1.85 that annualizes to a 13.2% return. This combined with the stock’s current 2.9% annualized dividend yield allows for a total potential yield of 16.2% if the stock does not exceed $30. However, if the stock rises 15.7% above its current price of $25.61 and is called away, shareholders would still achieve a 22.8% return, including dividends.
Additionally, as of Thursday afternoon trading, S&P 500 put volume stood at 789,666 contracts while call volume hit 1.6 million, resulting in a put:call ratio of 0.49, indicating a preference for calls among traders. This contrasts with the long-term median ratio of 0.65, suggesting increased bullish sentiment in options trading.
