Lineage Inc (Symbol: LINE) shareholders can enhance their income through a covered call option with a strike price of $50 expiring in January 2027. By selling this option at a premium of $4.30, investors can achieve an annualized return of 6.7% in addition to the stock’s 5% annual dividend yield, totaling an 11.7% annualized return if the stock is not called away. However, should the stock rise 17.4% to $50, shareholders would still realize a combined return of 27.5%, inclusive of dividends collected prior to the option being exercised.
The current trading price for LINE is $42.41, with a calculated trailing twelve-month volatility of 34%. In related options activity, S&P 500 components saw a put volume of 722,525 contracts and call volume of 1.33 million, resulting in a put-to-call ratio of 0.54, indicating a strong preference for calls among traders.
