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Cal-Maine Foods Inc (Symbol: CALM) offers shareholders a potential 20% annualized return by selling a May 2026 covered call at a $110 strike price, with a premium bid of $5.90. This strategy supplements its existing 9.9% annualized dividend yield. If CALM shares rise 16.8% to hit the $110 mark, shareholders could see a total return of 23.1%, including any collected dividends.
The current trading price for CALM is $94.70, with a trailing twelve-month volatility calculated at 42%. As of Tuesday mid-afternoon, S&P 500 put volume reached 793,680 contracts, while call volume was significantly higher at 2.01 million contracts, resulting in a put-call ratio of 0.40, indicating a preference for call options among traders.
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