Universal Display Corp (OLED) shareholders can enhance their income by selling a December covered call at the $180 strike, earning a $10.10 premium, which equates to an annualized return of 13.7%. If the stock price increases beyond $180, shareholders would still gain a total return of 21.8% from the current price of $156.25, considering dividends collected before the stock is called away.
Currently, the volatility for Universal Display Corp is calculated at 53%, based on the last 249 trading days. In the broader market, during mid-afternoon trading on Monday, the S&P 500 experienced 853,328 put contracts versus 1.76 million calls, resulting in a put:call ratio of 0.48, indicating a strong preference for call options.
