Shareholders of StoneCo Ltd (Ticker: STNE) can enhance their income potential by selling a covered call option at the $10.47 strike, with a January 2028 expiration. The current bid for this option stands at $1.45, translating to an additional 12% annualized return on top of the existing 27.5% annualized dividend yield, potentially culminating in a total annualized return of 39.5% if the stock is not called away. However, if the stock rises above $10.47, shareholders would forfeit any upside beyond this point.
As of now, StoneCo shares are trading at $9.19, meaning the stock would need to climb 14.6% to trigger this call option. The historical volatility for STNE is calculated at 53%. In related market activity, the S&P 500 showed a put volume of 3.20 million contracts and call volume of 6.66 million contracts on Friday, yielding a put-to-call ratio of 0.48, indicating heightened interest in call options relative to puts.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
