Shareholders of Lennox International Inc (LII) have the opportunity to enhance their income by selling covered calls on their shares. The December 2026 call option at a $660 strike price can yield an additional 3.7% annualized return, bringing the total potential annualized yield to 4.7% at the current stock price of $494.19. To achieve this total yield, the stock would need to increase by 32.9% to reach the strike price, resulting in a combined 36.6% return when accounting for dividends.
As of Tuesday, put volume among S&P 500 components was 682,368 contracts, with call volume at 1.19 million, leading to a put:call ratio of 0.57. This indicates a preference among traders for call options compared to puts, as the ratio is lower than the long-term median of 0.65.
