Are you a shareholder of Ford Motor Co. (Symbol: F) seeking to supercharge your income above the stock’s modest 5% annualized dividend yield? Look no further than the enticing prospect of selling the December 2026 covered call at the $16.82 strike. By seizing the opportunity to collect the premium based on the 95 cents bid, you could potentially boost your returns to a stellar 8.1% annualized rate against the current stock price. At Stock Options Channel, we call this financial maneuver the YieldBoost.
If your stock isn’t called away, you stand to relish in the satisfaction of a total 8.1% annualized rate. However, crossing the $16.82 threshold would result in the loss of any further profits if the stock is called away. Nevertheless, for such a fate to materialize, F shares would have to ascend a formidable 39.9% from their current levels. On the flip side, if the stock is indeed called, you would have garnered an impressive 47.8% return from this trading juncture, in addition to any dividends accrued pre-call.
The ebb and flow of dividend amounts often mirrors the undulations of profitability within each company. For Ford Motor Co., a cursory glance at the dividend history chart for F could offer valuable insights into the likelihood of the current dividend persisting. This, in turn, provides a gauge for the reasonableness of expecting a 5% annualized dividend yield.
In the realm of options trading, historical context can serve as a sturdy foundation for decision-making. The trailing twelve-month trading history of F paints a vivid picture, with the noteworthy $16.82 strike gleaming conspicuously in red.
Paired with the stock’s historical volatility, this chart can be a guiding compass when combined with fundamental analysis to evaluate whether vending the December 2026 covered call at the $16.82 strike delivers a fitting quid pro quo for the risk of surrendering any profits beyond $16.82. Delving deeper, we calculate the trailing twelve-month volatility for Ford Motor Co. to stand at 32%. To explore alternative call options contract ideas across various expirations, peruse the F Stock Options page on StockOptionsChannel.com.
In the trading arena, the pulse quickens with the put volume among S&P 500 components reaching 887,317 contracts, accompanied by a call volume of 1.62M. This paints a put:call ratio of 0.55 thus far for the day. Contrasted with the enduring median put:call ratio of .65, we witness a robust predilection for calls among options traders today.
Curious to discover the 15 call and put options that are currently stirring the pot in trading circles? Uncover the latest buzz here.
