Investors in Ford Motor Co. (Symbol: F) seeking to elevate their returns from its 5% annualized dividend yield can consider leveraging options. By selling the December 2026 covered call at the $16.82 strike, shareholders can capture the premium at a 95 cents bid, translating to an additional 3.1% annual return against the current stock price. This strategy, aptly labeled as the YieldBoost by Stock Options Channel, could potentially boost the total annualized rate to an impressive 8.1% if the stock remains uncalled.
To be dispassionate, dividend amounts are not always cast in stone, often tracking the erratic rhythm of each company’s financial fortunes. For Ford Motor Co., scrutinizing the dividend history chart below may offer insights into the sustainability of the existing dividend and the plausibility of persisting with a 5% annualized yield.
Displayed below is the trailing twelve-month trading trajectory of F, with the $16.82 strike prominently marked in red:
Coupled with historical stock volatility, this chart can serve as a compass, blended with fundamental analysis, to evaluate the risk-reward profile of selling the December 2026 covered call at the $16.82 strike. Does this maneuver offer a balanced return given the renouncement of potential gains beyond $16.82?
Examining the trailing twelve-month volatility for Ford Motor Co. (factoring in the last 251 trading days’ closing figures and today’s price of $12.01), the metric stands at 32%. For additional call option concepts across different available expirations, peruse the F Stock Options section on StockOptionsChannel.com.
During Thursday’s afternoon trading, S&P 500 components witnessed a put volume of 887,317 contracts, juxtaposed with a call volume of 1.62M, yielding a put:call ratio of 0.55 for the day. This figure surpasses the long-term median put:call ratio of 0.65, signaling a distinct preference for calls among options traders currently.
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Explore the Top YieldBoost Calls of the S&P 500.
