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WillScot Holdings Corp (WSC) shareholders can enhance their income by selling the July 2026 covered call at the $22.50 strike, collecting a premium of $2.00, which corresponds to an annualized return of 15.7%. This brings the total annualized return to 17.1% if the stock is not called away. The WSC stock currently sits at $20.07, necessitating a 12.5% increase for the stock to reach the strike price, resulting in a 22.5% total return including dividends if called.
As of mid-afternoon trading on a recent Wednesday, the options market for S&P 500 components shows 1.01 million put contracts and 1.80 million call contracts, leading to a put-call ratio of 0.56, indicating a preference for call options among traders.
WSC has a trailing twelve-month volatility of 51%, an important factor for investors considering the covered call strategy.
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