Shareholders of Primoris Services Corp (PRIM) can enhance their income by selling a covered call at a $105 strike price, set to expire in March 2027. The current bid premium of $6.80 translates to an annualized return of 16%, bringing the total annualized yield to 16.5% if the stock is not called away. For the stock to be called, it must rise 40.4% from its current price of $74.54.
In recent trading on Monday, the put volume among S&P 500 companies was 2.80 million contracts, while call volume reached 5.10 million, resulting in a put-call ratio of 0.55. This indicates a strong preference for calls relative to puts, compared to the long-term median put-call ratio of 0.65. The high call volume suggests bullish sentiments among traders.
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