Shareholders of JPMorgan Chase & Co. can enhance their income by selling a December 2027 covered call at the $380 strike, collecting a premium of $16.00. This strategy yields an annualized return of approximately 2.3%, increasing the total expected annualized return to 4.2% if the stock is not called away. However, should the stock price rise to $380 or above, shareholders could potentially face a 38% return, including dividends, from the current trading price of $287.95.
As of mid-afternoon trading on Monday, S&P 500 put volume was 722,525 contracts, while call volume reached 1.33 million, resulting in a put:call ratio of 0.54. This indicates a high preference for call options among buyers compared to the long-term median put:call ratio of 0.65.
