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Enhancing Ford Motor Co. Yield Through Options StrategyUnlocking Increased Yield Potential with Ford Motor Co.

Investors in Ford Motor Co. (Symbol: F) seeking to amplify their returns beyond the 5% annualized dividend yield of the stock can explore a strategic approach. By selling the December 2026 covered call at the $16.82 strike and capturing the premium at a bid of 95 cents, shareholders can enhance their annualized rate of return by an additional 3.1% (a tactic referred to as YieldBoost). This would culminate in a total annualized rate of 8.1% in a scenario where the stock remains unencumbered. The potential downside is relinquishing any gains above $16.82 if the stock surges to that level and is called away. However, for this scenario to materialize, F shares would need to ascend by a formidable 39.9% from present levels. In the instance where the stock is called, the shareholder stands to profit from a remarkable 47.8% return from the current trading level, in addition to any garnered dividends preceding the call.

Historically, dividend payouts are subject to fluctuation based on individual company profitability trends. Consequently, analyzing Ford Motor Co.’s dividend history chart (depicted below) can assist in assessing the likelihood of continuity for the current 5% annualized dividend yield.

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Displayed below is a twelve-month trading history for F, emphasizing the $16.82 strike in red:

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The historical volatility of the stock, as portrayed in the chart above, may serve as a valuable tool along with fundamental analysis to evaluate the risk-reward ratio of selling the December 2026 covered call at the $16.82 strike. Calculating the twelve-month trailing volatility for Ford Motor Co. incorporating the last 251 trading day closing figures as well as the current price of $12.01 sits at 32%. For additional call options contract strategies across various expirations, visit the F Stock Options page on StockOptionsChannel.com.

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During Thursday’s mid-afternoon trading period, the put volume within S&P 500 components totaled 887,317 contracts, with call volume reaching 1.62 million. This translates to a put:call ratio of 0.55 thus far for the day. In comparison to the long-standing median put:call ratio of 0.65, the current scenario reflects a preference for calls among options traders today.

Curious about the most discussed call and put options in trading today? Explore the top 15 options here.

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