Maximize Returns with Marathon Oil’s Covered Call Strategy

Exploring the Potential of Selling January 2026 Covered Calls

Shareholders of Marathon Oil Corp. (Symbol: MRO) seeking to enhance their income can consider selling the January 2026 covered call at the $32 strike price. By doing so, investors can earn the premium from a bid of $1.82, which translates to an impressive 5.5% additional return based on the current stock price. This strategy, known as YieldBoost by Stock Options Channel, could yield a total annualized return of 7.1% if the stock remains uncalled. However, any gains over $32 will be forfeited if the stock price reaches that level. For the stock to be called, MRO shares would need to increase by 13.6% from their current levels. In such a case, shareholders would gain a total return of 20.1%, factoring in dividends accumulated before the call.

Dividends often reflect a company’s fluctuating profitability and can be unpredictable. To assess the sustainability of Marathon Oil Corp.’s 1.6% annualized dividend yield, examining the company’s dividend history is essential.

Assessing the Trading Landscape for Marathon Oil

A chart of MRO’s trailing twelve-month trading history, with the $32 strike price highlighted in red, provides further insights:

The aforementioned chart, combined with the stock’s historical volatility, can guide investors in deciding whether selling the January 2026 covered call at the $32 strike is a worthwhile risk. Our calculations indicate that Marathon Oil Corp.’s trailing twelve-month volatility stands at 25%, based on the last 251 trading days and the current price of $28.28. For insights into additional call option strategies and their various expiration dates, investors can refer to the MRO Stock Options page on StockOptionsChannel.com.

During mid-afternoon trading on Wednesday, the put volume among S&P 500 components reached 821,671 contracts, while call volume hit 1.65 million, resulting in a put:call ratio of 0.50 for the day. This figure is significantly lower than the long-term median put:call ratio of 0.65, indicating buyers are favoring calls in today’s options trading environment.

For more trending call and put options discussions, explore the latest 15 options traders are focusing on today.

Top YieldBoost Calls of the S&P 500 »

Also see:

• MG Price Target
• PGJ YTD Return
• PFNX Insider Buying

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