Shareholders of F&G Annuities & Life Inc (FG) can increase their income by selling October covered calls at the $35 strike price, collecting a premium of $2.00, which annualizes to a 16.7% return, resulting in a total potential annualized rate of 19.4% if the stock is not called away. The stock currently trades at $32.36, meaning it would need to rise 8.1% to trigger a call, which would still yield a 14.3% return, plus any collected dividends.
As of Wednesday afternoon trading, there were 907,553 put contracts and 1.62 million call contracts among S&P 500 components, yielding a put-to-call ratio of 0.56, indicating a preference for calls. This is in contrast to the long-term median put-to-call ratio of 0.65.
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