Shareholders of Assurant Inc (AIZ) can enhance their income beyond its 1.5% annualized dividend yield by selling covered calls at a $240 strike, set to expire in June 2026. The current bid for this option is $10.00, translating to an annualized return of 8.5% in addition to the existing dividend for a total potential return of 10%, assuming the stock is not called. The stock would need to rise 3.3% to reach the strike price for this scenario to occur.
As of the latest trading data, Assurant’s shares are priced at $231.36, with a trailing twelve-month volatility of 27%. Additionally, on Monday, S&P 500 options trading saw a put volume of 910,069 contracts against a call volume of 1.69 million, resulting in a put-to-call ratio of 0.54, indicating a preference for call options among traders.
