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Kontoor Brands Inc (KTB) shareholders can enhance their income by selling a June 2026 covered call at the $95 strike, collecting a premium of $7.30, which equates to an additional 12.8% annualized return based on the current stock price of $84.10. This strategy could yield a total annualized return of 15.3% if the stock is not called away. However, should the stock price rise above $95, shareholders will miss out on any further gains, although they’d still achieve a 20.4% return if the stock is called after an 11.8% price increase.
As of Friday mid-afternoon, the trading volume included 976,564 put contracts and 1.62 million call contracts among S&P 500 components, resulting in a put:call ratio of 0.60. This indicates that buyers are favoring call options over puts, reflecting strong market interest in upward price movement.
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