HCI Group Inc (Symbol: HCI) is offering shareholders the opportunity to enhance their income with a November covered call at the $150 strike, with a premium of $10.50. This equates to a potential annualized return of 19%, boosting the total yield to 20.1% if the stock is not called away. Current stock price is $140.39, indicating a 5.6% increase needed for the stock to be called, ultimately resulting in a 13% return plus dividends if that occurs.
As of mid-afternoon trading on Wednesday, the put volume for S&P 500 components was 964,394 contracts, while call volume reached 1.71 million, resulting in a put:call ratio of 0.56. This indicates a preference for call options, as the ratio is below the long-term median of 0.65.
