Shareholders of Patterson-UTI Energy Inc. (PTEN) can enhance their income by selling January 2027 covered calls at the $12 strike, offering a premium of $1.05 per share. This strategy could yield an annualized return of approximately 17%, combining with the stock’s current 4.1% dividend yield. If the stock price exceeds $12, shareholders risk losing further upside gains; PTEN would need to appreciate by 25.1% for the stock to be called away, resulting in a total return of 36.1% if called.
As of Tuesday, PTEN’s stock is trading at $9.68, with a trailing twelve-month volatility of 59%. In broader market activity, S&P 500 options trading showed a put volume of 681,846 contracts compared to 1.31 million calls, highlighting a put-to-call ratio of 0.52, indicating strong demand for call options.
