Zimmer Biomet Holdings Inc (ZBH) shareholders have the opportunity to enhance their income by selling a September 2026 covered call at a $95 strike price. This strategy could yield an additional 10.7% annual return based on a $7.40 bid, bringing the total potential annualized return to 11.7%, assuming the stock is not called away. Should the stock rise above $95, shareholders would earn an 11.1% return, factoring in dividends before the call.
As of today, Zimmer Biomet’s stock price is $92.01, with a trailing twelve-month volatility of 32%. The overall options market shows heightened activity, with 1.65 million call contracts and 859,788 put contracts among S&P 500 components, reflecting a put:call ratio of 0.52, significantly lower than the long-term median of 0.65.
