Williams Sonoma Inc (WSM) shareholders can enhance their income by selling January 2028 covered calls at the $300 strike, which currently offers a premium of $20.00. This strategy could yield an additional annualized return of 4.9%, bringing the total potential return to 6.2% if the stock is not called away.
As of now, WSM’s stock price is approximately $206.51, meaning that a 45.6% increase would be required for WSM shares to be called away at the $300 strike. Should this occur, shareholders would experience a total gain of 55.3% from the current trading level, including any dividends received.
The company’s trailing twelve-month volatility is estimated at 42%, which could inform investors about the risk-reward balance when considering this options strategy.
