Turning to the calls side of the option chain, the call contract at the $35.00 strike price has a current bid of $1.05. If an investor was to purchase shares of TSS stock at the current price level of $33.01/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $35.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.21% if the stock gets called away at the August 2014 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if TSS shares really soar, which is why looking at the trailing twelve month trading history for Total System Services, Inc., as well as studying the business fundamentals becomes important. Below is a chart showing TSS's trailing twelve month trading history, with the $35.00 strike highlighted in red:
First Week of TSS August 2014 Options Trading
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