Ares Management Corp (NYSE: ARES) shareholders can enhance their income by selling December covered calls at the $155 strike, potentially earning an additional 13% annualized return based on a premium of $17.50. This strategy could yield a total potential return of 15.9% annually if the stock remains below $155, which is a 2.7% upward movement from the current trading price of $150.89.
In mid-afternoon trading on Monday, the put volume among S&P 500 components reached 692,500 contracts, while call volume stood at 1.42 million, resulting in a put-call ratio of 0.49. This indicates a significantly higher preference for call options compared to puts, contrasting with the long-term median ratio of 0.65.
Historical volatility for Ares Management Corp has been calculated at 42%, based on the last 250 trading days. The analysis highlighted by trading history and the upcoming options expiration can guide investors in evaluating the potential risks and rewards associated with these trading strategies.
