Shareholders of Dell Technologies Inc. (DELL) have the option to enhance their income by selling covered calls at a $160 strike price for September 2027, with a bid premium of $15.30. This strategy could yield an additional 8% return, bringing the total annualized return to 9.8%, assuming the stock is not called away. If the stock rises above $160, shareholders could realize a 49.4% return, factoring in dividends, given a 36.4% price increase from its current level of $116.92.
As of Wednesday afternoon trading, the S&P 500 showed a total of 1.86 million call options compared to 858,771 put options, resulting in a put-call ratio of 0.46—indicating a strong preference for call options among traders. This ratio is significantly lower than the long-term median of 0.65, reflecting heightened bullish sentiment in the options market.
