Shareholders of Medical Properties Trust Inc (MPT) can enhance their income by selling a covered call for December 2027 at a $7 strike price, generating a premium of $0.65 per share. This strategy could yield an additional 6.5% return on top of the current 6.8% annualized dividend yield, resulting in a potential total annualized return of 13.2%, assuming the stock is not called away. However, if the stock price appreciates by 29.4% and exceeds $7, shareholders would forfeit additional gains beyond that price while realizing a combined return of 41.4% from the initial trading level and dividends.
As of mid-afternoon trading on Monday, the overall options market reflected a put volume of 1.19 million contracts against a call volume of 2.27 million, yielding a put:call ratio of 0.52, indicating a strong preference for calls among options traders relative to the long-term median ratio of 0.65.
