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Kennemetal Inc. (KMT) shareholders can enhance their income by selling April 2026 covered calls at the $25 strike for a premium of $1.10, which corresponds to an annualized return of 10.1%, resulting in a total yield of 13.9% if the stock isn’t called away. KMT shares currently trade at $21.43 and would need to rise 16.8% for the calls to be exercised.
Currently, the trailing twelve-month volatility for KMT is calculated at 40%. On Tuesday, mid-afternoon trading saw S&P 500 put volume at 890,419 contracts and call volume at 1.62 million contracts, resulting in a put:call ratio of 0.55, indicating significantly higher call volume compared to puts.
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