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Shareholders of Hartford Insurance Group Inc (HIG) have the opportunity to enhance their income by selling covered calls at a $130 strike price, which could yield a total annualized return of 10.5%. The current stock price is $125.00, meaning a 4% increase is necessary for shares to be called away, offering a 7.8% return in addition to dividends before the stock is called.
The covered call option, available until March 2026, has a premium bid of $4.70, which annualizes to an 8.9% return. The company’s trailing twelve-month volatility stands at 23%, assisting investors in assessing risk against potential reward.
On Thursday, mid-afternoon trading saw a put:call ratio of 0.42 among S&P 500 components, indicating strong preference for call options with a total call volume of 1.64 million compared to 688,107 puts.
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