Shareholders of Nordson Corp. (NDSN) can enhance their income by selling a December covered call at a $220 strike, collecting an $11.80 premium that translates into an additional 11.5% annualized rate of return. Combining this with the 1.5% annualized dividend yield results in a potential total return of 13% if the stock, currently priced at $209.87, is not called away. However, if the stock rises above $220, any gains beyond this strike would be forfeited, equating to a 10.6% return including dividends.
The trailing twelve-month volatility for Nordson Corp. is calculated at 29%. In broader market activity, during mid-afternoon trading on Monday, S&P 500 components saw a put volume of 810,397 contracts and a call volume of 1.55 million, resulting in a put:call ratio of 0.52, indicating higher call buying activity than usual compared to the long-term median of 0.65.
