Entravision Communications Corp. (NASDAQ: EVC) shareholders can enhance their income by selling the November covered call at the $10 strike, potentially earning a 24.4% additional annualized return based on a $1.00 premium. This strategy, in conjunction with EVC’s current 2.8% annualized dividend yield, could yield a total annualized return of 27.1% if the stock is not called away. The stock would need to rise 31.6% to be called, thereby providing a combined return of 44.7% including dividends.
As of mid-afternoon trading on Thursday, October 12, the put volume among S&P 500 components reached 2.94 million contracts, with call volume at 6.75 million, resulting in a put-call ratio of 0.44. This high call volume indicates a strong preference for calls among traders, compared to the long-term median ratio of 0.65.
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