“`html
Shareholders of Newell Brands Inc (NWL) can enhance their income by selling a January 2027 covered call at a $7 strike price, earning a premium of 55 cents, which translates to an annualized return of 9.1%. This, combined with the current annualized dividend yield of 5.7%, totals a potential 14.8% annual return if the stock is not called away. The stock must rise 42.9% for the call to be executed, which would result in a 54.1% total return including dividends.
As of Wednesday’s mid-afternoon trading, Newell’s stock price stands at $4.92, with a trailing twelve-month volatility of 67%. Additionally, the overall trading activity in the S&P 500 reflected a high call volume, with 1.36 million calls versus 743,795 puts, resulting in a put:call ratio of 0.55, indicating a preference for calls among traders.
“`
