Options Strategy to Increase Energizer Holdings Yield to 38.1%

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Energizer Holdings Inc. (Symbol: ENR) offers a 6.2% annualized dividend yield. Shareholders can further increase income by selling the November covered call at a $25 strike for a premium of 5 cents, which could yield an additional 31.8% annualized return, bringing the total potential return to 38.1% if the stock is not called away. Current trading price stands at $19.21, indicating a necessary 30.8% price increase for the stock to be called away.

The trailing twelve-month volatility for Energizer is calculated at 45%, based on the last 250 trading days. This data, along with historical trading patterns, can assist investors in evaluating the potential risks and rewards of the covered call strategy.

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