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Shareholders of Baker Hughes Company (BKR) can enhance their income by selling a March 2026 covered call option at a $46 strike price. The current premium is $3.60, which translates to an additional 15% annualized return, resulting in a total potential return of 17% if the stock is not called away. BKR must rise 1.5% for the option to be exercised, offering a 9.4% return on the current trading price of $45.52, not including dividends.
As of Monday mid-afternoon trading, the put volume for S&P 500 components stood at 1.01 million contracts with call volume at 1.85 million, yielding a put:call ratio of 0.54. This is significantly below the long-term median ratio of 0.65, indicating a higher preference for call options among traders.
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