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Shareholders of Carlyle Group Inc (CG) can enhance their income by selling a March 2026 covered call at the $62.50 strike price for a premium of $4.70, resulting in an annualized return of 20.9%, which includes the existing 2.4% annualized dividend yield. The CG stock currently trades at $58.88.
If the stock price exceeds $62.50, shareholders risk losing potential gains beyond that level. The stock would need to climb 6% from its current price for this scenario to occur, providing a 14% return plus any dividends collected before the stock is called away.
As of mid-afternoon trading on Tuesday, the S&P 500 showed a call volume of 1.62 million contracts against a put volume of 890,419 contracts, resulting in a put-to-call ratio of 0.55, indicating significantly higher call activity compared to puts.
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