Shareholders of DENTSPLY SIRONA Inc (Symbol: XRAY) seeking to enhance their income beyond the stock’s current 5.1% annualized dividend yield have an interesting opportunity. By selling the April 2026 covered call at the $15 strike, investors can collect a premium based on the 75 cents bid. This strategy can yield an additional 11.4% rate of return against the current stock price, a concept we refer to as YieldBoost. In this scenario, the total annualized return could reach 16.4%, assuming the stock is not called away.
However, it’s important to note that any upside beyond $15 would be forfeited if the stock rises to that level and is subsequently called away. For this to occur, XRAY shares would need to increase by 18.9% from their current levels. In the event that the stock is called, shareholders would still enjoy a substantial 24.9% return from this trading level, in addition to any dividends collected prior to the call.
Dividend amounts can be unpredictable and often fluctuate with the company’s profitability. For DENTSPLY SIRONA Inc, examining the dividend history chart for XRAY can provide insights into whether the most recent dividend is likely to persist, and whether a 5.1% annualized dividend yield is a reasonable expectation.
Below is a chart illustrating XRAY’s trailing twelve-month trading history, with the $15 strike highlighted in red:
The chart above, along with the stock’s historical volatility, serves as a valuable guide when combined with fundamental analysis. This can help assess whether selling the April 2026 covered call at the $15 strike offers a favorable reward for the risk of potentially giving up upside beyond $15. (Do most options expire worthless? This and six other common options myths debunked).
We calculate the trailing twelve-month volatility for DENTSPLY SIRONA Inc—considering the last 250 trading day closing values and today’s price of $12.61—to be 52%. For additional call options contract ideas across various expirations, visit the XRAY Stock Options page on StockOptionsChannel.com.
In mid-afternoon trading on Wednesday, the put volume among S&P 500 components reached 723,110 contracts, while call volume stood at 1.77 million, resulting in a put:call ratio of 0.41 for the day. This figure is significantly lower than the long-term median put:call ratio of 0.65, indicating a strong preference for calls among buyers in options trading today. Find out which 15 call and put options traders are discussing today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
