Shareholders of Range Resources Corp (RRC) can enhance their income by selling a covered call at the $40 strike for May 2026, with a bid premium of $1.50. This strategy could yield an additional 11.1% annualized return, combined with the current 1% annualized dividend yield, bringing total potential returns to 12.1%. If the stock price rises beyond $40, gains above this strike price would be forfeited, requiring a 13.3% increase in RRC’s price to trigger this outcome.
As of mid-afternoon trading on Friday, the S&P 500 put volume reached 910,982 contracts, with call volume at 1.88 million, resulting in a put-to-call ratio of 0.49. This indicates high call activity relative to puts, as it falls below the long-term median ratio of 0.65, suggesting a bullish sentiment among options traders today.
