Shareholders of Berkley Corp (Symbol: WRB) can enhance their income through an October covered call at a $69.50 strike price. This strategy offers a premium of $2.60, resulting in an annualized return of 15.1%, totaling a 15.6% annualized rate if the stock is not called away from its current price of $67.90. If the stock rises 2.5% to $69.50, shareholders would achieve a 6.4% return from this trading level, along with any collected dividends.
As of mid-afternoon trading on Wednesday, the put volume among S&P 500 components reached 555,333 contracts, while call volume was at 982,779, resulting in a put:call ratio of 0.57. This indicates a preference for calls in options trading compared to the long-term median ratio of 0.65.
