Shareholders of CRH plc (CRH) are presented with an opportunity to enhance their income by selling a June 2026 covered call at a $150 strike price. The premium for this option is currently bid at $3.30, which translates to an additional 5.4% annualized return on top of CRH’s existing 1.1% annualized dividend yield, bringing the potential total annualized return to 6.5%. If CRH shares were to rise above $150, shareholders could earn a total return of 19.1%, factoring in dividends paid before the stock is called away.
As of now, CRH shares are priced at $128.39, which would require a 16.5% increase for the calls to be exercised. The company’s trailing twelve-month volatility is calculated at 33%. In the broader market context, as of Friday afternoon trading, the S&P 500 showed a put volume of approximately 910,982 contracts versus a call volume of 1.88 million, resulting in a put-to-call ratio of 0.49, indicating a preference for call options among traders.
