Shareholders of Scripps Company (NASDAQ: SSP) can enhance their income by selling October covered calls at the $6 strike price. This strategy would allow them to collect a premium of 35 cents, which annualizes to an additional 15.8% return, bringing the total yield to 21.1% if the stock is not called away. Currently, SSP trades at $3.77, requiring a 58.3% increase for the shares to be called, which would still result in a 67.5% return from the current trading levels, plus any dividends received beforehand.
As of Tuesday afternoon, the overall put volume among S&P 500 constituents stands at 1.53 million contracts, while call volume is at 2.77 million contracts, yielding a put-to-call ratio of 0.55. This reflects significantly higher call activity compared to historical norms, with the long-term median ratio being 0.65.
The trailing twelve-month volatility for Scripps is calculated at 97%, based on the last 251 trading days, providing insight into the stock’s historical price movements as shareholders consider options trading strategies.
