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NRG Energy Inc (NYSE: NRG) shareholders can enhance their income by selling January 2028 covered calls at a $230 strike price. This strategy offers a potential annualized return of 7.8%, including an additional premium of 6.8% based on a $25.50 bid, against the current stock price of $171.71. A significant price increase (33%) would result in the stock being called away, yielding a total return of 47.8% for shareholders who participate in this strategy.
The company’s historical volatility is calculated at 54%, factoring in the last 250 trading days. Meanwhile, on Wednesday, midday trading indicated a put volume of 684,819 contracts versus 1.41 million call contracts among S&P 500 components, resulting in a put:call ratio of 0.48, highlighting a strong preference for calls relative to puts.
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