Peabody Energy Corp (NASDAQ: BTU) shareholders can enhance their income by selling a January 2027 covered call at a $50 strike price, with a premium of $3.20, providing an additional 10.2% return. If the stock remains under $50, shareholders could expect a total annualized return of 11% based on the current price of $35.87. However, should BTU shares rise 38.2% to be called away, investors would still realize a 47% return from their investment plus dividends until that point.
As of Wednesday’s midday trading, the options market showed put volume among S&P 500 stocks at approximately 933,850 contracts, and call volume at 1.86 million contracts, resulting in a put-call ratio of 0.50. This indicates a strong preference for call options among traders, significantly lower than the long-term median ratio of 0.65.
