Shareholders of Worthington Steel Inc (WS) can enhance their income by selling a covered call at a $40 strike price, set to expire in May 2026. This strategy offers a potential additional return of 14.1%, resulting in a total annualized return of 15.9% if the stock remains under $40. Currently, WS shares are priced at $36.17, meaning a 10.4% increase would lead to the stock being called away, yielding a combined return of approximately 16%, including dividends.
As of mid-afternoon trading on Tuesday, the put volume among S&P 500 components reached 682,368 contracts, while call volume hit 1.19 million, leading to a put:call ratio of 0.57. This indicates a strong preference for call options relative to puts, surpassing the long-term median ratio of 0.65.
