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Lennox International Inc (LII) shareholders can enhance their income by selling a November covered call at the $570 strike, collecting a premium of $41.20, which translates to an 18% annualized return against the current stock price of approximately $565.33. If the stock rises above the $570 strike and is called away, shareholders could realize an 8.1% return in addition to the received dividends.
The stock’s volatility over the past twelve months is noted to be 33%, reflecting the risks associated with selling the covered call. Additionally, on Thursday, a significant trading volume was recorded in options, with 950,843 puts and 2.14 million calls, resulting in a put-call ratio of 0.44, indicating a preference for call options among traders.
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