Hillenbrand Inc (Symbol: HI) shareholders can enhance their income by selling an October covered call at the $25 strike price, collecting a premium of 60 cents. This annualizes to a 15.3% return, bringing the total potential annualized return to 19.8% if the stock is not called away, based on its current price of $19.82. Should the stock rise to $25, shareholders would realize a 28.6% return, including dividends collected prior to the call.
The trailing twelve-month volatility for Hillenbrand Inc is calculated at 55%. In broader market activity on Wednesday, S&P 500 components recorded a put volume of 789,811 contracts and call volume of 1.69 million, resulting in a put:call ratio of 0.47, indicating a preference for calls compared to the long-term median of 0.65.
