Shareholders of HF Sinclair Corp (NYSE: DINO) have the opportunity to enhance their returns by selling a June 2026 covered call at the $52.50 strike price. By doing so, they can collect a premium of $2.15, which translates to an additional 9.6% annualized return on top of the current 4.3% dividend yield, yielding a total annualized return of 13.9% if the stock is not called away. However, should the stock price increase by 13.1% and surpass the $52.50 strike, shareholders would miss out on any upside beyond that price but could still achieve a 17.7% overall return including dividends.
As of mid-afternoon trading on Wednesday, there were 677,356 put contracts and 1.41 million call contracts traded among S&P 500 components, resulting in a put-to-call ratio of 0.48. This indicates a significantly higher preference for call options compared to puts, contrasting with the long-term median ratio of 0.65.
