Maximize FOXA Returns: Elevate Yield from 1.1% to 6.2% with Options Strategies

Published On: January 17, 2025 1:19 am

Maximize Returns with Covered Calls on Fox Corp Shares

Strategies for Investors Eyeing Additional Income from FOXA

Shareholders of Fox Corp (Symbol: FOXA) seeking to enhance their income beyond the stock’s modest 1.1% annual dividend yield might consider selling a January 2026 covered call at the $55 strike price. By doing this, they can earn a premium at a bid of $2.45, which offers an additional annualized return of roughly 5% based on the current stock price. This brings the total potential annualized yield to about 6.2%, assuming the stock is not called away. If the stock does rise above $55, shareholders would forfeit any upside above that level. To reach this point, FOXA shares would need to increase by 13.3% from current prices. In such a case, shareholders could still realize an 18.3% return, factoring in any dividends received prior to the call.

Dividend amounts can be unpredictable, often fluctuating with a company’s profitability. For Fox Corp, assessing the dividend history chart for FOXA below is crucial for determining whether the current yield is sustainable.

FOXA Dividend History Chart

The chart below tracks FOXA’s trading history over the past twelve months, highlighting the $55 strike in red:

Loading chart — 2025 TickerTech.com

This chart, alongside the stock’s historical volatility, helps gauge whether selling the January 2026 covered call at the $55 strike offers a favorable risk-reward ratio. The trailing twelve-month volatility for Fox Corp is calculated at 21%, based on the past 251 trading days and the current price of $48.56. For additional covered call options for different expiration dates, check out the FOXA Stock Options page on StockOptionsChannel.com.

In mid-afternoon trading on Thursday, put volume among S&P 500 components stood at 948,157 contracts, while call volume reached 1.70 million, resulting in a put:call ratio of 0.56 for the day. Compared to the long-term median put:call ratio of 0.65, this indicates a heightened preference for call options in the market today.

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