Roper Technologies Inc (ROP) shareholders can enhance their income by selling December covered calls at the $620 strike price, receiving an $8.70 premium. This strategy offers an annualized return of 3.8% in addition to the stock’s current 0.6% dividend yield, totaling a 4.4% return if the stock is not called away. For the stock to be called, it would need to rise 10.6% from its current price of $560.96, which would yield a combined return of 12.1% for shareholders, including dividends.
As of Tuesday afternoon, the S&P 500 put volume reached 1.01 million contracts, while call volume was at 1.67 million, resulting in a put:call ratio of 0.60. This indicates a higher preference for calls among traders, compared to the long-term median ratio of 0.65.
