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Otis Worldwide Corp (OTIS) is offering shareholders the opportunity to sell a June 2026 covered call at a $95 strike, potentially earning a total annualized return of 7.4%, which includes the stock’s 1.9% dividend yield. The premium for this option is currently at $2.70, representing an additional 5.5% rate of return if the stock is not called away. For shareholders, a price increase of 9% from the current level of $86.89 would trigger a loss of upside above $95, but they could still realize a total return of 12.1% if called.
As of Monday afternoon trading, the put volume among S&P 500 components was 886,867 contracts with call volume at 1.84 million, resulting in a put-call ratio of 0.48. This indicates a significantly higher preference for calls, in contrast to the long-term median ratio of 0.65.
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