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Snap-On, Inc. (SNA) shareholders can enhance their income by selling a June 2026 covered call at a $380 strike, which offers a premium of $9.80. This equates to an additional 4.3% annualized return, totaling a 6.8% annualized return if the stock isn’t called away, with a current stock price of $343.65.
If the stock rises above $380, shareholders would forfeit any upside beyond that threshold, although it would require an 11.3% increase from current levels. This scenario could yield a combined return of 14.2% including dividends before the stock is called.
As of Thursday afternoon trading, S&P 500 put volume was 688,107 contracts and call volume was 1.64 million, resulting in a put/call ratio of 0.42, indicating significantly higher call buying interest compared to puts.
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