Shareholders of Meritage Homes Corp (MTH) can enhance their income by selling June covered calls at the $80 strike price. This strategy could yield an annualized return of 17.8%, factoring in the stock’s current price of $72.56 and a premium of $4.50. If MTH shares are called away after rising above $80, shareholders would achieve a total return of 16.2%, in addition to any collected dividends.
As of mid-afternoon trading on Friday, the overall put volume among S&P 500 components was 1.53 million contracts, while call volume reached 2.57 million, resulting in a put-to-call ratio of 0.59. This indicates a stronger preference for call options compared to puts, contrasting with the long-term median ratio of 0.65.
