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Shareholders of REV Group Inc (REVG) can enhance their income by selling a July 2026 covered call at a $65 strike price for a premium of $3.00, which annualizes to an additional 8.9% return, combining with the stock’s current annual yield of 0.5% for a total potential yield of 9.4%. If the stock rises above $65, shareholders could face a 23.3% price increase to realize this gain, resulting in a total return of 29% plus any collected dividends.
As of mid-afternoon trading on May 10, 2023, the put volume among S&P 500 components was 1.01 million contracts against 1.80 million calls, leading to a put:call ratio of 0.56, indicating strong buying preference for calls relative to puts.
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