AMETEK Inc. (AME) shareholders can enhance their income by selling a December covered call at the $195 strike, with a premium of $4.40, translating to an annualized return of 5.7%. This would boost the overall return to 6.4% if the stock is not called away. However, the stock must rise 8.9% for it to be called, resulting in an 11.4% total return, including dividends.
The stock is currently trading at $178.04, with a trailing twelve-month volatility of 24%. On Monday, put volume among S&P 500 components reached 722,525 contracts, while call volume hit 1.33 million contracts, resulting in a put:call ratio of 0.54, indicating substantial call preference among traders.
