Maximize Your Income with Nexstar Media Group: Covered Call Strategies

Shareholders exploring ways to enhance their earnings from Nexstar Media Group Inc (Symbol: NXST) can consider selling December 2025 covered calls at the $195 strike price. By doing this, investors can collect a premium based on the current $14.10 bid, yielding an additional 7.7% annualized return on top of the stock’s existing 4% dividend yield. This strategy results in a total potential annualized return of 11.7% if the stock is not called away.

However, if NXST reaches above $195 and is called away, shareholders would forgo any gains beyond that price. Yet, this scenario would require the stock to increase by 14.2% from its current trading level, leading to a cumulative return of 22.5% when the dividends accumulated before the stock’s sale are taken into account.

Dividend distributions can be unpredictable and often fluctuate with a company’s profitability. For Nexstar Media Group, analyzing the dividend history chart provided below may help investors assess the sustainability of the current 4% annualized dividend yield.

Additionally, the following chart illustrates NXST’s trading history over the past twelve months, with the $195 strike price marked in red:

This chart, combined with an understanding of the stock’s past volatility, can aid in deciding whether the potential reward of selling a December 2025 covered call at the $195 strike compensates adequately for the risk of losing upside potential. Currently, the trailing twelve-month volatility for Nexstar Media Group, based on the past 251 trading days along with today’s price of $170.02, stands at 35%. For further options insights, explore the NXST Stock Options page on StockOptionsChannel.com.

During mid-afternoon trading last Friday, S&P 500 components recorded a put volume of 1.17 million contracts and a call volume of 2.39 million contracts, resulting in a put:call ratio of 0.49 for the day. This ratio indicates significantly higher call activity relative to put activity when compared to the long-term median put:call ratio of 0.65, suggesting that buyers favor call options in today’s trading environment.

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Additional Resources:

• Stock RSI
• DTRTU Historical Stock Prices
• IAE Videos

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.