Shareholders of Terex Corp. (TEX) can enhance their income with a January 2026 covered call at a $50 strike, earning a premium of $4.50. This strategy provides an additional annualized return of 15.8%, combining for a total of 17.2% if the stock is not called away. The stock price must rise 7.4% for it to be called.
Currently, Terex pays a 1.4% annualized dividend yield. The company’s volatility is calculated at 47%, and historical performance should be assessed to determine the feasibility of this options strategy.
