Booking Holdings Inc (BKNG) shareholders can enhance income from the current 0.7% annualized dividend yield by selling a September 2027 covered call at the $6300 strike for a premium of $820. This strategy can yield an annualized return of 6.6%, bringing the total to 7.3% if the stock is not called away. For the stock to be called, it would need to rise 15.1% from its current price of $5468. If this occurs, shareholders would realize a total return of 30.1%, plus any dividends collected prior to the call.
On Wednesday, mid-afternoon trading revealed an S&P 500 call volume of 1.66 million contracts against put volume of 876,843 contracts, resulting in a put:call ratio of 0.53, indicating a strong preference for calls compared to puts. This call volume is notably high against the long-term median ratio of 0.65.
