Maximizing Yield on Woodward: Increasing Returns from 0.4% to 11.7% with Options Strategies

Shareholders of Woodward, Inc. (WWD) can enhance their income by selling July 2026 covered calls at a $330 strike price, accumulating a premium worth $21.00. This strategy could yield an annualized return of 11.3% on top of the current dividend yield of 0.4%, resulting in a total of 11.7% if not called away. Should the stock price exceed $330, shareholders would achieve a 17.9% return.

As of the latest trading session on Tuesday, the stock price stands at $297.60, reflecting a 10.9% increase needed for the stock to be called away. In addition, the trailing twelve-month volatility for Woodward, Inc. is calculated at 32%. During the same trading day, S&P 500 options activity showed a put volume of 738,443 contracts against call volume of 1.67 million, resulting in a put:call ratio of 0.44, indicating strong preference for call options among buyers.