Shareholders of HCI Group Inc (HCI) can enhance their income by selling September covered calls at the $175 strike, potentially earning an additional annualized return of 16.9% on top of the existing 1% dividend yield. If the stock price reaches the strike level, shareholders could see a total return of 17.4%, provided the stock climbs 7% from its current trading price of $163.57.
As of Friday, the put volume among S&P 500 components stood at 1.46 million contracts, while call volume reached 2.92 million, resulting in a put-call ratio of 0.50. This indicates a higher preference for call options, reflecting strong bullish activity among traders. HCI’s trailing twelve-month volatility is currently calculated at 34%.
