Ford Motor Co. (NYSE: F) has introduced new options for expiration on August 1st, including a notable call contract at a strike price of $11.00, currently bid at 12 cents. If an investor buys shares at $10.49 and sells this call as a covered call, they could achieve a total return of 6.01% if the stock is called away, excluding any dividends.
This $11.00 strike price represents a 5% premium to the current trading price. There’s a 48% chance that this covered call will expire worthless, allowing the investor to retain their shares and keep the premium, which equates to a 1.14% additional return, or 8.35% annualized. The implied volatility for the call is 96%, while the trailing twelve-month volatility stands at 39%.
