Newmont Corp (Symbol: NEM) shareholders can enhance their income by selling a January 2027 covered call at the $85 strike, collecting a premium of $3.95, which translates to an additional annualized return of 4.3%. This could yield a total of 6% annually if the stock isn’t called away. Currently, NEM shares stand at $58.86, meaning a 45.2% increase would result in the stock being called away, offering shareholders a potential total return of 52%, including dividends.
As of Thursday’s mid-afternoon trading, options activity for S&P 500 components included 950,843 put contracts and 2.14 million call contracts, resulting in a put:call ratio of 0.44, indicating a preference for call options compared to puts, based on the long-term median ratio of 0.65.
