Helios Technologies Inc (Symbol: HLIO) has a current annualized dividend yield of 1.1%. Shareholders may consider selling December covered calls at the $40 strike price, collecting a premium of $1.50, which could yield an additional 8.6% rate of return, totaling a potential annualized return of 9.7%. If the stock is called away, a 24.4% increase is required for the shares to reach that strike, resulting in a combined return of 29% when factoring in dividends.
As of Wednesday, mid-afternoon trading showed put volume among S&P 500 components at 907,553 contracts with call volume at 1.62 million, reflecting a put:call ratio of 0.56, indicating a preference for calls relative to puts.
