Alight Inc (NYSE: ALIT) is offering a potential 11.4% annualized return for shareholders willing to sell a January 2027 covered call at the $5 strike for a premium of 40 cents per share. This strategy builds on the stock’s current 4.1% annualized dividend yield. However, shareholders could miss out on additional gains if the stock price increases beyond the $5 strike, which would require a 28.2% rise from the current price of $3.90.
The trailing twelve-month volatility for Alight Inc is calculated at 46%, indicating a relatively high level of risk. In mid-afternoon trading on Tuesday, the S&P 500 saw a put volume of 894,672 contracts and a call volume of 1.57 million, resulting in a put-to-call ratio of 0.57, suggesting a stronger preference for call options among traders.
