Shareholders of Worthington Steel Inc (WS) can enhance their income by selling covered calls at a $40 strike price, with a premium bid of $1.70, potentially yielding an additional 10.4% annualized return. Combined with the current annualized dividend yield of 1.9%, this could result in a total annualized return of 12.3% if the stock is not called away. For shareholders, if the stock price rises 19.5% to exceed $40, they would earn a total return of 24.6%, inclusive of dividends.
The current price of WS is $33.53, with a trailing twelve-month volatility of 51%. In midday trading on Tuesday, S&P 500 put volume was 550,779 contracts against 1.06 million calls, leading to a put:call ratio of 0.52, indicating strong call preference among buyers.
