Shareholders of West Pharmaceutical Services, Inc. (WST) can enhance their income potential by selling a December covered call at the $360 strike, which yields an estimated annualized return of 5.2% based on a premium bid of $12.40. This strategy requires the stock to rise 32.1% for the option to be exercised, resulting in a total return of 36.6% if called, plus any dividends collected prior to that.
Currently, the stock price stands at $269.29, with the company’s trailing twelve-month volatility calculated at 62%. In addition, trading data shows a notable put:call ratio of 0.54 among S&P 500 components, indicating a preference for call options among investors.
