Shareholders of Thermo Fisher Scientific Inc (TMO) can enhance their income by selling January 2028 covered calls at the $840 strike price, which could yield an additional 2.8% return based on a $36.00 bid. This would result in a total annualized return of 3.1% if the stock isn’t called away. Currently priced at $619.38, TMO would need to rise 35.3% for the shares to be called, resulting in a total return of 41.1% including dividends if this occurs.
Additionally, the trading volume on Wednesday indicated a preference for calls among S&P 500 components, with 1.74 million call contracts traded compared to 805,353 put contracts, yielding a put:call ratio of 0.46. This contrasts with the long-term median ratio of 0.65, suggesting increased bullish sentiment among options traders.
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