Nucor Corp. (NUE) shareholders have the opportunity to boost their income by selling a covered call at the $180 strike, potentially earning an additional 5.9% rate of return on top of the stock’s 1.5% annualized dividend yield. The stock would need to rise by 21.2% for the call to be exercised, resulting in a 31.8% return for the shareholder. Options trading for NUE shows a high call volume compared to puts, indicating a preference for calls among buyers. Historical data and volatility analysis can help assess the risk-reward ratio of selling covered calls.

Source: StockOptionsChannel.com

Read more at Nasdaq: YieldBoost Nucor To 7.4% Using Options