FTAI Aviation Ltd (Symbol: FTAI) shareholders can enhance their income by selling a covered call option at the $450 strike, set to expire in January 2028. Given the current stock price of $275.98, this strategy could yield an additional 9.2% return based on a premium bid of $47.50, resulting in a total annualized rate of 9.8% if the stock is not called away. However, shareholders risk losing any upside beyond $450 if the stock increases by 63.7%, which would still present an 80.9% return including dividends.
As of mid-afternoon trading on Tuesday, the overall options market for S&P 500 components showed 681,846 put contracts against 1.31 million call contracts, resulting in a put-to-call ratio of 0.52, indicating a marked preference for calls compared to the long-term median ratio of 0.65.
