Shareholders of Realty Income Corp (NYSE: O) have an opportunity to enhance their income via a December covered call at the $65 strike, generating a premium of $2.35. This translates to an annualized return of 4.4% on the current stock price of $62.82, resulting in a total potential return of 9.5% if the stock is not called away. Should the stock price exceed $65, shareholders would still earn a 7.1% return from the current trading level in addition to any dividends collected prior to the call.
As of Monday afternoon trading, the put volume among S&P 500 components reached 1.19 million contracts, while call volume was at 2.27 million contracts, yielding a put-to-call ratio of 0.52. This indicates a high preference for call options compared to puts, contrasting with the long-term median ratio of 0.65.
