Shareholders of Newell Brands Inc. (NWL) can enhance their income by selling January 2028 covered calls at the $10 strike for a premium of 65 cents, which translates to an annualized return of 8.2%. This, combined with the stock’s existing 4.8% dividend yield, could yield a total annualized return of 13%, provided the stock does not exceed the $10 strike price. Current stock price sits at $5.81.
For the stock to be called away, it would need to rise 71.2%, resulting in an overall return of approximately 82.4%, factoring in dividends collected prior to the call. The trailing twelve-month volatility for NWL is calculated at 61%, based on the last 251 trading days.
As of the most recent trading session, the put volume among S&P 500 components was 3.38 million contracts, and call volume was 7.23 million contracts, illustrating a put-to-call ratio of 0.47, indicating a strong preference for call options among buyers.
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