Core Insights - The article discusses strategies to achieve a 26% return on investment portfolios, emphasizing the importance of generating income without depleting principal amounts [1][2]. Group 1: Investment Strategies - The SPDR S&P 500 ETF Trust (SPY) has a low yield of 1.1%, but options strategies can enhance returns significantly [2][5]. - Using OptionSignals, investors can identify optimal times to write covered calls or sell puts, potentially increasing income from SPY [2][6]. - A specific call option for SPY shows a 58% chance of expiring worthless, with a total return of 0.74% if called, which annualizes to 28% due to the short timeframe [5][6]. Group 2: Yield Enhancement Techniques - The article highlights the potential for higher yield boosts by adjusting strike prices; for example, a $690 strike for SPY increases the chance of retaining shares to 77% but lowers the yield boost to 11.2% annualized [6]. - The Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) and Global X NASDAQ 100 Covered Call ETF (QYLD) are mentioned as examples of funds that utilize similar strategies to achieve yields up to 11.8% [6][7]. - A DIY approach using Invesco QQQ Trust Series (QQQ) can yield a 0.69% boost, annualizing to 42% through similar call-writing strategies [7][8]. Group 3: Individual Stock Applications - Annaly Capital (NLY), a mortgage REIT, is highlighted for its 12.3% yield and potential for covered calls, with specific strike prices suggested for maximizing income [9][10]. - Selling call options on NLY can provide a 0.9% yield boost, which annualizes to 22.5%, enhancing overall returns [10][12]. - The article emphasizes the importance of timing in options trading, advocating for selling calls when stocks are at short-term highs to maximize income [12][13].

Core Viewpoint - Investors in BridgeBio Pharma Inc (BBIO) have new options available for May 2026 expiration, presenting potential opportunities for higher premiums in options trading due to the time value associated with the contracts [1] Options Analysis - The put contract at the $52.50 strike price has a current bid of $6.50, allowing investors to purchase the stock at an effective cost basis of $46.00 if sold [2] - The $52.50 strike represents a 1% discount to the current trading price, with a 63% chance of expiring worthless, potentially yielding a 12.38% return on cash commitment or 18.99% annualized [3] - The call contract at the $57.50 strike price has a current bid of $6.70, offering a total return of 20.74% if the stock is called away at expiration [4] - The $57.50 strike represents an 8% premium to the current trading price, with a 45% chance of expiring worthless, which could yield a 12.60% boost in returns or 19.33% annualized [7] Volatility Insights - The implied volatility for both the put and call contracts is approximately 57%, while the actual trailing twelve-month volatility is calculated at 52% [8]

Core Insights - New options for Mirum Pharmaceuticals Inc (MIRM) began trading this week, with a focus on contracts expiring on November 21st [1] Options Analysis - A put contract at the $70.00 strike price has a current bid of $0.40, allowing investors to purchase shares at an effective cost basis of $69.60, which is a 6% discount to the current trading price of $74.69 [2][3] - The likelihood of the put contract expiring worthless is estimated at 70%, potentially yielding a 0.57% return on cash commitment or 3.31% annualized [3] - A call contract at the $80.00 strike price has a current bid of $1.00, offering an 8.45% total return if the stock is called away at expiration [6][8] - The $80.00 strike represents a 7% premium to the current stock price, with a 60% chance of the covered call expiring worthless, allowing the investor to retain both shares and premium [8] Volatility Metrics - Implied volatility for both the put and call contracts is approximately 41%, while the actual trailing twelve-month volatility is calculated at 40% [9]

Group 1 - Wingstop Inc (WING) shareholders can enhance their income by selling a January 2028 covered call at a $390 strike price, which can yield an additional 7.3% annualized return based on the current stock price of $46.50, leading to a total annualized rate of 7.7% if the stock is not called away [2][3] - If WING shares rise to $390, shareholders would miss out on any upside above that price, which requires a 43.7% increase from current levels, resulting in a 60.8% return from this trading level, plus any dividends collected before the stock is called [2][3] - The historical volatility of WING is calculated at 57%, which can assist in evaluating the risk-reward profile of selling the covered call option [7] Group 2 - Dividend amounts for Wingstop Inc are not always predictable and are influenced by the company's profitability, with the current annualized dividend yield at 0.4% [3] - A chart showing WING's trailing twelve-month trading history highlights the $390 strike price, providing a visual reference for potential trading strategies [4] - In mid-afternoon trading, the put volume among S&P 500 components was 983,948 contracts, while call volume reached 2.20 million, indicating a high preference for call options among traders with a put:call ratio of 0.45 [8]

Core Viewpoint - Playtika Holding Corp (PLTK) offers a strategy for shareholders to enhance income through covered calls, with a potential total annualized return of 17.3% if the stock is not called away [2]. Group 1: Income Generation Strategy - Shareholders can sell a December 2026 covered call at a $5 strike price, collecting a premium that annualizes to an additional 6.5% return based on a 30 cents bid [2]. - If the stock is called away, shareholders could still achieve a 43.6% return from the current trading level, in addition to any dividends collected prior to the call [2]. Group 2: Dividend Yield and Volatility - The current annualized dividend yield for PLTK is 10.8%, but dividend amounts can be unpredictable and are influenced by the company's profitability [3]. - The trailing twelve-month volatility for PLTK is calculated to be 48%, which can assist in evaluating the risk-reward profile of selling covered calls [7].

Core Viewpoint - Assurant Inc (AIZ) shareholders can enhance their income by selling covered calls at a $220 strike price, potentially achieving a total annualized return of 9.4% if the stock is not called away [2][3]. Group 1: Investment Strategy - Shareholders can sell the March 2026 covered call at the $220 strike, collecting a premium that annualizes to an additional 7.9% return against the current stock price [2]. - If the stock is called away, shareholders would earn a 7.3% return from the current trading level, in addition to any dividends collected prior to the call [2][3]. - AIZ shares need to increase by 3.2% from current levels for the stock to be called away [2]. Group 2: Dividend Insights - The annualized dividend yield for Assurant Inc is currently at 1.5%, but dividend amounts can be unpredictable and are influenced by the company's profitability [3]. - Analyzing the dividend history can provide insights into the likelihood of maintaining the current dividend yield [3]. Group 3: Market Analysis - The trailing twelve-month volatility for Assurant Inc is calculated to be 28%, which can assist in evaluating the risk-reward profile of selling the covered call [7]. - The stock's historical trading data, including the highlighted $220 strike price, can serve as a guide for potential options strategies [4][7].

Core Viewpoint - New options for International Business Machines Corp (IBM) with a January 2028 expiration present potential opportunities for investors, particularly in the put and call contracts available [1] Summary by Category Options Overview - The newly available options contracts have 858 days until expiration, allowing sellers of puts or calls to potentially achieve higher premiums compared to shorter-term contracts [1] Put Contract Details - A put contract at the $250.00 strike price has a current bid of $34.60, allowing an investor to purchase the stock at $250.00 while collecting a premium, resulting in a cost basis of $215.40 [2] - The $250.00 strike price represents an approximate 3% discount to the current trading price of $257.75, with a 64% chance that the put contract may expire worthless [3] - If the put contract expires worthless, the premium would yield a 13.84% return on the cash commitment, or 5.89% annualized, referred to as YieldBoost [3] Call Contract Details - A call contract at the $270.00 strike price has a current bid of $39.70, allowing an investor to sell the stock at $270.00 if purchased at $257.75, resulting in a total return of 20.16% if the stock is called away [6] - The $270.00 strike price represents an approximate 5% premium to the current trading price, with a 43% chance that the covered call contract may expire worthless [8] - If the covered call contract expires worthless, the premium would represent a 15.40% boost in extra return, or 6.55% annualized, also referred to as YieldBoost [8] Volatility Analysis - The implied volatility for the put contract is 31%, while for the call contract it is 29%, with the actual trailing twelve-month volatility calculated at 29% [9]

Core Insights - New options for Merck & Co Inc (MRK) with a January 2028 expiration have become available, presenting potential opportunities for option sellers to achieve higher premiums due to the long time value [1] Options Analysis - The put contract at the $80.00 strike price has a current bid of $11.05, allowing an investor to effectively purchase shares at a cost basis of $68.95 if sold [2] - The $80.00 strike represents a 2% discount to the current trading price of $81.75, with a 61% chance of expiring worthless, potentially yielding a 13.81% return on cash commitment [3] - The call contract at the $85.00 strike price has a current bid of $11.10, offering a total return of 17.55% if the stock is called away at expiration [6] - The $85.00 strike represents a 4% premium to the current trading price, with a 44% chance of expiring worthless, which could yield a 13.58% boost in returns [8] Volatility Metrics - The implied volatility for the put contract is 29%, while for the call contract it is 28%, compared to an actual trailing twelve-month volatility of 27% [9]

Core Insights - New options for Howmet Aerospace Inc (HWM) with a January 2028 expiration have become available, presenting potential opportunities for investors [1] - The put contract at a $185.00 strike price offers a premium that lowers the effective purchase price of HWM shares, making it an attractive alternative for potential buyers [2] - The call contract at a $220.00 strike price allows for a significant return if the stock is called away, but also carries the risk of missing out on further upside if the stock price increases significantly [6][8] Put Option Analysis - The $185.00 put contract has a current bid of $31.60, allowing investors to effectively purchase shares at $153.40 after accounting for the premium [2] - This strike price represents a 2% discount to the current trading price, with a 68% chance of expiring worthless, which would yield a 17.08% return on cash commitment [3] - The implied volatility for the put contract is 39%, indicating market expectations for price fluctuations [9] Call Option Analysis - The $220.00 call contract has a current bid of $34.50, providing a potential total return of 35.13% if the stock is called away at expiration [6] - This strike price is approximately 17% above the current trading price, with a 44% chance of expiring worthless, allowing investors to retain both shares and premium [8] - The implied volatility for the call contract is 36%, reflecting market sentiment regarding future price movements [9] Trading History - The trailing twelve-month trading history for Howmet Aerospace Inc is highlighted, showing the relative positions of the $185.00 and $220.00 strike prices [4][6]

Core Viewpoint - New options for Cardinal Health, Inc. (CAH) with a January 2028 expiration present potential opportunities for investors, particularly in the put and call contracts available [1] Options Analysis - The put contract at a $150.00 strike price has a current bid of $17.70, allowing investors to purchase the stock at an effective cost basis of $132.30, which is lower than the current market price of $151.14 [2] - The $150.00 strike price represents a 1% discount to the current trading price, with a 65% chance that the put contract may expire worthless, offering an 11.80% return on cash commitment or 5.02% annualized if it does [3] - The call contract at a $165.00 strike price has a current bid of $20.10, providing a potential total return of 22.47% if the stock is called away at expiration [6] - The $165.00 strike price is approximately 9% above the current trading price, with a 45% chance that the covered call contract may expire worthless, yielding a 13.30% additional return or 5.66% annualized if it does [8] Volatility Insights - The implied volatility for the put contract is 28%, while for the call contract it is 26%, compared to an actual trailing twelve-month volatility of 23% [9]