Shareholders of Simmons First National Corp (SFNC) may increase their income by selling February covered calls at a $22.50 strike price, garnering a premium of 75 cents per share, which translates to a potential annualized return of 55.2% against the current stock price of $19.80. If the stock is called away at the strike price, shareholders could realize a total return of 59.4% annually and a 17.1% return on their investment, factoring in dividends.
As of Monday’s trading session, the stock’s volatility was calculated at 28%, based on the last 250 trading days. In the S&P 500 options market, the put volume reached 692,500 contracts while call volume soared to 1.42 million contracts, resulting in a put:call ratio of 0.49, indicating a strong preference for call options among traders.
