Shareholders of Ovintiv Inc (Ticker: OVV) can enhance their income by selling a July covered call at the $45 strike, with a bid premium of $2.50. This strategy can yield an annualized return of 15.6% if the stock price remains below $45, which is a 10.5% increase from its current price of $40.41. If called away above the $45 strike, investors would still net a total return of 16.6%, including dividends.
As of mid-afternoon trading on Wednesday, the put volume among S&P 500 components reached 917,392 contracts, compared to call volume of 2.14 million contracts, indicating a put-call ratio of 0.43. This suggests a preference for call options among traders, significantly above the long-term median ratio of 0.65.
