Shareholders of AAON, Inc. (Symbol: AAON) can enhance their income by selling covered calls for March 2027 at a $130 strike price, collecting a premium of $9.70. This strategy could yield an additional 16.8% annualized return, bringing the total potential annualized return to 17.2% if AAON shares are not called away. The current stock price is $93.53, and the shares would need to rise 39.6% for them to be called away, resulting in a 50.1% return plus any dividends collected prior.
In mid-afternoon trading on Tuesday, the volume of put options among S&P 500 components was 2.70 million contracts, while call volume stood at 5.66 million, leading to a put-call ratio of 0.48. This indicates a preference for call options among buyers, significantly lower than the long-term median put-call ratio of 0.65.
AAON’s trailing twelve-month volatility has been calculated at 62%, based on the last 251 trading days. Investors are advised to consider this volatility and historical trading information when evaluating call options strategies.
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