In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of W & T Offshore Inc, looking at the dividend history chart for WTI below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.9% annualized dividend yield.
Below is a chart showing WTI's trailing twelve month trading history, with the $5 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the October covered call at the $5 strike gives good reward for the risk of having given away the upside beyond $5. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for W & T Offshore Inc (considering the last 251 trading day closing values as well as today's price of $4.25) to be 84%. For other call options contract ideas at the various different available expirations, visit the WTI Stock Options page of StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Further WTI Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
