Shareholders of Broadridge Financial Solutions (Ticker: BR) are now able to enhance their returns by selling June covered calls at a $240 strike price. This move could yield an additional 5% return based on a current premium of $4.70, bringing the total potential annualized return to 6.8% if the stock is not called away. Currently, the stock price sits at $220.79, which means it would need to increase by 8.8% for this scenario to occur.
The trading volume on Wednesday indicated a strong preference for call options among S&P 500 components, with 1.63 million call contracts traded against 886,181 puts, resulting in a put-call ratio of 0.54. This ratio is significantly below the long-term median of 0.65, signaling heightened bullish sentiment among options traders.
