Shareholders of Vishay Intertechnology, Inc. (Symbol: VSH) can enhance their income by selling December covered calls at a $20 strike price. The premium of $1.05 bid translates to an annualized return of 13.9%, adding to the current 2.3% dividend yield for a total potential return of 16.2%. If VSH shares are called at the $20 strike, shareholders could realize a 20.3% return, provided the stock rises 14.3% from its current price of $17.38.
The implied volatility for VSH is calculated at 55% based on the last 249 trading days. As of recent trading, the overall market saw 722,525 put contracts and 1.33 million call contracts among S&P 500 components, yielding a put:call ratio of 0.54, indicating high call buying relative to puts.
