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Shareholders of Powell Industries, Inc. (POWL) can enhance their income by selling a covered call option at the $370 strike for February 2026, with a premium of $47.90, yielding an estimated 50.2% annualized return against the current stock price of $348.55. If the stock is called away, investors could achieve a total return of 19.9% from this trading level, excluding dividends.
As of Wednesday, the trading volume on S&P 500 components included 787,816 put contracts and 1.58 million call contracts, resulting in a put:call ratio of 0.50, indicating a preference for calls compared to the long-term median of 0.65.
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