Shareholders of TKO Group Holdings Inc (Ticker: TKO) can enhance their income by selling a covered call option at the $270 strike price expiring in January 2028. With a bid price of $20.50, this strategy can yield an additional 4.6%, increasing the total annualized return to 6% if the stock stays below that price. Currently, TKO shares are trading at $215.75, meaning they would need to appreciate by 24.9% for the call option to be exercised, resulting in a total 34.3% return if coupled with dividends.
As of Tuesday’s mid-afternoon trading session, there were 682,368 put contracts and 1.19 million call contracts traded among S&P 500 components, leading to a put-call ratio of 0.57, indicating a strong preference for call options. This figure is lower than the long-term median ratio of 0.65, reflecting higher call volume relative to puts in the market.
