Goosehead Insurance Inc (GSHD) offers a 5.7% annualized dividend yield, with an option to enhance income by selling a December covered call at the $110 strike. This can generate an additional 24.6% rate of return based on an $11.90 premium, resulting in a potential total annual yield of 30.2% if the stock price remains below $110. Currently, GSHD shares are priced at $104.44, needing a 5.1% increase to reach the call strike price.
If the stock is called away, shareholders will realize a 16.5% return from the current trading level, in addition to collected dividends. GSHD’s 52% trailing twelve-month volatility could affect the risk-reward profile of this strategy, with current trading data showing a put-call ratio of 0.43, indicating a preference for call options among buyers.
