Shareholders of Perrigo Company plc (PRGO) can enhance their income by selling covered calls at the $15 strike price with a May 2026 expiration. This strategy could yield an additional annualized return of 18.8% based on a $1.00 premium, totaling a potential return of 27.6% if the stock is not called away. Currently, PRGO shares are priced at $13.10, meaning a 14.8% rise is required for the stock to be called at $15.
In trading on Wednesday, put volume among S&P 500 components reached 859,788 contracts compared to call volume of 1.65 million, resulting in a put-call ratio of 0.52. This indicates higher demand for calls relative to puts, a significant difference from the long-term median put-call ratio of 0.65.
