How To YieldBoost Zimmer Biomet Holdings From 1% To 11.7% Using Options

Zimmer Biomet's dividend history is uneven and the recent payout that implies roughly a 1% annualized yield should be judged against past distributions; with ZBH trading at $92.01 and trailing-12-month volatility of 32%, the note frames a covered-call idea — selling a September 2026 $95 call — as a way to capture income while accepting the risk of foregoing upside above $95. Separately, intraday S&P 500 options flow showed 859,788 puts versus 1.65M calls (put:call 0.52 vs a long-term median of 0.65), signaling unusually strong call-buying interest today.

Analysis

Zimmer Biomet's dividend history is described as uneven and the most recent payout implies roughly a 1% annualized yield; the article frames this yield as insufficient on its own to justify income exposure. ZBH is trading at $92.01 and the note reports a trailing‑12‑month historical volatility of 32%, with a September 2026 $95 covered‑call highlighted as a possible income trade. Selling the $95 covered call would generate premium but explicitly caps upside beyond $95, so the decision is a tradeoff between modest recurring income and forfeited appreciation. Broader market context shows outsized call demand today — 1.65M calls versus 859,788 puts for a put:call ratio of 0.52 compared with a long‑term median of 0.65 — which can support higher call premiums in the near term; investors should therefore treat a covered‑call as a tactical option‑market‑driven income play and continue to monitor Zimmer Biomet's dividend consistency and fundamentals before relying on the yield.

Key Decisions for Investors

• Consider selling the September 2026 $95 covered call to collect premium only if you accept being called away above $95 and only need modest incremental yield
• Size any covered‑call position conservatively given ZBH's 32% trailing volatility and the limited ~1% dividend baseline
• Do not rely on the dividend as a primary income source—verify dividend consistency and company fundamentals before increasing exposure
• Exploit current elevated call demand to seek richer premiums but plan explicit roll or exit rules in case sentiment or volatility reverses