Shareholders of Sapiens International Corp NV (SPNS) can enhance their income by selling December covered calls at the $35 strike, collecting a premium that annualizes to an additional 15.8% return, totaling 17.9% if the stock isn’t called away. The current stock price is $28.90, and the shares would need to rise 21.4% to reach the strike price.
The trailing twelve-month volatility for Sapiens International is calculated at 41%. On Monday, the put volume among S&P 500 components was 740,222 contracts, while call volume reached 1.52 million, resulting in a put:call ratio of 0.49, indicating a preference for calls among traders.
