Maximizing Returns: Analyzing Permian Resources Corp Options Strategy
Understanding Covered Calls for Enhanced Income
Shareholders of Permian Resources Corp (Symbol: PR) looking to increase their income can benefit from selling the January 2026 covered call at a $20 strike price. Doing this allows investors to collect the 90 cents bid premium, equating to an additional 4.9% rate of return based on the current stock price. At Stock Options Channel, we refer to this approach as the YieldBoost. If the stock is not called away, shareholders can achieve a total annualized return of 8.7%. However, if PR shares rise above $20, that upside would be lost. The stock must increase by 26.7% for it to be called, meaning the potential return would amount to 32.4%, supplemented by dividends prior to the stock being called.
The Uncertainty of Dividend Payments
Dividend payments can fluctuate, mirroring each company’s profitability. For those assessing Permian Resources Corp, reviewing the dividend history chart for PR below can provide insight into the likelihood of maintaining the current 3.8% annualized dividend yield.
Stock Performance Highlighted
The chart below illustrates PR’s trailing twelve-month trading history, with the $20 strike highlighted in red:
Evaluating Risk: The Covered Call Strategy
Combining the aforementioned chart with stock volatility can assist investors in determining whether selling the covered call at the $20 strike price presents a favorable risk-reward scenario. The trailing twelve-month volatility for Permian Resources Corp is calculated at 29%, based on the last 251 trading days and the current price of $15.78. For additional call option strategies at various expirations, please visit the PR Stock Options page on StockOptionsChannel.com.
Market Activity Looks Favorable
As of Thursday afternoon, trading data revealed 1.47 million put contracts and 2.99 million call contracts among S&P 500 components, resulting in a put:call ratio of 0.49. This shows considerable call volume relative to puts, indicating a trend where buyers are leaning towards calls in current options trading.
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Also see:
– CAC Historical Stock Prices
– TALK market cap history
– FDMT Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
