“`html
Shareholders of Dick’s Sporting Goods, Inc (NYSE: DKS) can enhance their income by selling a January 2028 covered call at the $260 strike price. This strategy could yield an additional 6.5% return based on the current $28.50 bid, leading to a total annualized rate of 8.9% if the stock is not called away.
The current price for DKS is $205.07, indicating a requirement for a 28.1% increase for the stock to reach the $260 strike. If exercised, shareholders would realize a 42.1% return from their current trading level, plus any dividends collected prior to the call.
As of mid-afternoon trading on Friday, the S&P 500 saw put volume of 830,798 contracts against call volume of 1.74 million, resulting in a put-to-call ratio of 0.48. This suggests a significant preference for call options among traders today, compared to the long-term median ratio of 0.65.
“`
