Maximizing Returns: Enhancing Carpenter Technology Yield from 0.3% to 9.2% with Options

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Carpenter Technology Corp. (Ticker: CRS) is offering shareholders a potential total annualized return of 9.2% by selling a covered call on March 2026 at a $300 strike price, with a premium bid of $11.50. The current share price is $243.22, requiring a 23.7% increase for the stock to be called away, which would yield a 28.5% return, plus any dividends earned before the call.

The company’s current annualized dividend yield is 0.3%, though dividends can fluctuate based on profitability. As of Friday, total put volume among S&P 500 components was 1.47 million contracts, while call volume reached 2.85 million, resulting in a put:call ratio of 0.51, indicating a higher preference for calls in options trading.

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