PennyMac Financial Services Inc (Symbol: PFSI) shareholders can enhance their income potential by selling August covered calls at a $115 strike price, with a premium bid of $4.50. This strategy could yield an additional 8.4%, leading to a total annualized return of 9.7% if the stock is not called away. Currently, PFSI shares are priced at $97.78, meaning a 20% stock price increase would necessitate the stock being called, resulting in a 24.7% overall return including dividends.
The company’s annualized dividend yield stands at 1.2%, with historical dividend trends impacting future payouts. PennyMac’s options volatility is calculated at 53% over the last 251 trading days, providing context for risk assessment in selling covered calls. For more options trading insights, investors can refer to the PFSI Stock Options page on StockOptionsChannel.com.
