Shareholders of TechnipFMC plc (FTI) can enhance their income by selling January 2027 covered calls at a $45 strike, collecting a premium of $3.20, which equates to an annualized return of 6.3%. This combined with the stock’s existing 0.5% dividend yield results in a total annualized return of 6.8%, provided the stock is not called away. The shares would need to rise 22.3% for the option to be exercised, leading to a 31% return when factoring in prior dividends.
As of Friday’s mid-afternoon trading, TechnipFMC shares are priced at $36.86, with a trailing twelve-month volatility of 42%. In broader S&P 500 options trading, put volume reached 1.31 million contracts against call volume of 2.20 million, resulting in a put:call ratio of 0.60, indicating higher call preferences among traders.
