Shareholders of ONEOK Inc (OKE) can enhance their income potential by selling January 2028 covered calls at a $100 strike price, capturing a premium of $2.35, which translates to an annualized return of 1.5%. This would increase their total potential return to 7.2% if the stock is not called away. Currently, the stock is priced at $73.06, meaning it would need to climb 36.7% for the shares to be called away, resulting in a total return of 39.9% including dividends.
As of Monday’s trading, put volume among S&P 500 components reached 910,069 contracts, while call volume was higher at 1.69 million, leading to a put:call ratio of 0.54. This indicates a preference for calls among traders, given that the long-term median ratio is 0.65.
The trailing twelve-month volatility for ONEOK Inc is calculated at 31%, providing context for potential trading strategies involving covered calls.
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