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Strategy To YieldBoost Jack Henry & Associates From 1.2% To 9.1% Using Options

By Bnk Invest

Strategy To YieldBoost Jack Henry & Associates From 1.2% To 9.1% Using Options

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 Jack Henry & Associates, Inc., looking at the dividend history chart for JKHY 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 1.2% annualized dividend yield.

Below is a chart showing JKHY's trailing twelve month trading history, with the $185 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 June 2025 covered call at the $185 strike gives good reward for the risk of having given away the upside beyond $185. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Jack Henry & Associates, Inc. (considering the last 251 trading day closing values as well as today's price of $178.81) to be 18%. For other call options contract ideas at the various different available expirations, visit the JKHY Stock Options page of StockOptionsChannel.com.

In mid-afternoon trading on Wednesday, the put volume among S&P 500 components was 917,141 contracts, with call volume at 2.30M, for a put:call ratio of 0.40 so far for the day. Compared to the long-term median put:call ratio of .65, that represents very high call volume relative to puts; in other words, buyers are preferring calls in options trading so far today. Find out which 15 call and put options traders are talking about today.

Top YieldBoost Calls of the S&P 500 "

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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