Utz Brands Inc Offers Income Boost via Covered Calls

Capitalizing on a 9.1% Yield with Covered Calls

Investors in Utz Brands Inc (Symbol: UTZ) seeking an income boost beyond the stock’s 1.4% annual dividend yield can consider selling a June 2025 covered call at the $20 strike price. This strategy allows them to collect a premium based on the 90 cents bid, which translates to an annualized return of 9.1% based on the current stock price. If shares are not called away, investors could see a total annualized yield of 10.4%. However, if the stock exceeds $20, any potential upside above that price would not be realized. Notably, the stock would need to rise 14.7% for this scenario to unfold, suggesting that a total return of 19.8% could still be achieved from this trading level, plus any dividends received prior to the call.

Dividend amounts often fluctuate based on company profitability. Therefore, assessing Utz Brands Inc’s dividend history is crucial for determining whether its current 1.4% yield is sustainable. The dividend history chart for UTZ below provides a visual representation of these trends.

The chart below displays UTZ’s trading history over the past twelve months, highlighting the $20 strike in red:

Examining this chart, alongside the stock’s historical volatility, aids in assessing whether selling the June 2025 covered call at the $20 strike is a prudent risk-reward decision. Current calculations reveal Utz Brands Inc’s trailing twelve-month volatility at 32%, based on the last 251 trading days, including a current price of $17.42. Those interested in exploring other call options with various expiration dates can visit the UTZ Stock Options page on StockOptionsChannel.com.

In mid-afternoon trading on Monday, S&P 500 components recorded a put volume of 1.33 million contracts, while call volume reached 3.27 million contracts. This resulted in a put-to-call ratio of 0.41 for the day, indicating an unusually high call volume compared to puts. This data suggests that investors are currently favoring call options in their trading decisions.

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Additional Resources:

• EOG Market Cap History
• Pool DMA
• MGAM Historical Stock Prices

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