W & T Offshore Inc (NASDAQ: WTI) shareholders can enhance their income by selling a covered call option at a $7 strike price expiring in January 2028. The current premium bid is 70 cents, offering an additional annualized return of 13.3%, leading to a total annualized yield of 14.3% if the stock price remains below $7. For the stock to be called away, it would need to rise 79%, resulting in a substantial 96.9% return at the $7 strike, including dividends.
As of mid-afternoon trading on Wednesday, WTI’s price stands at $3.87, with a trailing twelve-month volatility of 86%. In S&P 500 trading, put volume reached 2.48 million contracts compared to 4.59 million calls, yielding a put:call ratio of 0.54, indicating strong call buying interest.
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