McKesson Corp (MCK) shareholders can enhance their income by selling covered calls on the stock priced at $860 for January 2027, offering a premium of $33.00, which translates to an annualized return of 3.2%. This is in addition to the current dividend yield of 0.5%, bringing the total potential annual return to 3.7% if shares are not called away. For the stock to be called, it would need to rise 21.8%, equating to a 26.4% return including dividends if successfully called.
The current stock price for McKesson is $708.38, with a trailing twelve-month volatility of 28%. As of mid-afternoon trading on Wednesday, S&P 500 put volume was reported at 789,811 contracts, compared to call volume of 1.69 million, resulting in a put:call ratio of 0.47, indicating a preference for call options among buyers.
